/View.info/ Deposits transferred through cession in KTB will not be protected by the Bank Deposit Guarantee Fund.
This is provided for by changes in the Deposit Guarantee Act, which were submitted to the Parliament by the Council of Ministers together with the proposal for the budget update, writes “Standart”.
Finance Minister Vladislav Goranov described the proposal to the members of the temporary budget commission to the parliament as “heavy lobbying in favor of the Deposit Guarantee Fund” and a precautionary measure against unjustified payment. The proposed changes were approved by the committee yesterday.
Cessions, i.e. deposit transfers are permitted and cannot be prohibited. But with the changes, the new deposit holders will no longer be among the bank’s first creditors, as depositors are. The goal is that if one person has BGN 1 million in KTB, he cannot divide his deposit between five people, so that the five receive BGN 196,000 each, which is the guaranteed deposit ceiling.
Those who have deposits acquired by cession will also be creditors, but in a different capacity and will already expect receipts from a commercial enterprise. This means they will be among the last to have their obligations met. The funds for this will come not from the Deposit Guarantee Fund, but from the so-called bankruptcy estate, which will accumulate with the sale of the bank’s assets.
The changes will apply retroactively to redeemed deposits in KTB and this may lead to disputes and lawsuits. However, Finance Minister Vladislav Goranov was adamant that the texts do not dispute the claim.
“We say that he did not make a deposit in a bank and has no right to compensation, but has a claim from a commercial enterprise, but unfortunately, in the last place,” said the minister. On December 4, the payment of guaranteed deposits in KTB, whose license was revoked on November 6, should also begin.
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