Банкеръ Weekly

Briefs

BNB IS MANAGING DEPOSITS EXCEEDING BGL3.2BN

Bulgarian National Bank (BNB) is turning to a bank for management of mega-deposists. It concentrates the money of the Ministry of Finance and the first rank budgetary institutions, as well as the BGLevs accounts of the National Social Insurance Institute, the Healthcare Fund, the Tobbacco Fund and part of the Air Traffic Control deposits. All these amounts are included in the BNB Issue Department Balance Sheet under Deposits of Government and Budgetary Organisations item. As of December 8, 2000, these accounts amount to totally BGL2.5BN.
The central bank was reluctant in giving accurate information on the amounts deposited by each institution. The Banker weekly, however, learned that the Ministry of Finance has deposited almost BGL1.3BN, EUR200MN, more than USD20MN and a similar amount of SDR (a currency unit used by the IMF and the WB).

Second ranking in terms of the BGL deposits in BNB is the Healthcare Fund, which incomes considerably exceeds expenditures. Currently its deposits with the central bank amount to approximately BGL390MN and EUR60MN. The amounts deposited by the National Social Insurance Institute and the Tobbacco Fund are extremely small, while the Air Traffic Control is among the big depositors at the BNB, having about EUR50MN in its accounts and small BGL amounts. The central bank services the major volume of payments it has to and from IATA Clearing House - the organisation handling the settlement between almost all airports, air traffic control stations and the carriers worldwide.
About 76.9% of all above mentioned funds in EURO, USD and SDR are invested in 7-day deposits. About 0.5% of the BGLs are deposited for 1 month, more than 9.5% - for three months and approximately 14.2% for six to twelve months. It should be noted that the bigger part of deposits exceeding six months belong to the Healthcare Fund.
Currently BNB's interest rate on 7-day BGLs and Euro deposits amounts to 0.0081% (0.4194 p.a.). Current interest on 7-day USDollar deposits is 0.0152% (0.7864% p.a.), and that of the SDRs - 0.0127% (0.6554 p.a.).

Besides the budgetary institutions, as of the end of October 2000 the Bank Consolidation Company (BCC) has deposited EUR345MN for a three month period. This is the larger part of the EUR360MN which BCC received by UniCredito and Allianz for its BULBANK shares. BCC had to deposit EUR15MN in an escrow account with BNP - Dresdnerbank.
The average annual yield, earned by BNB in 2000 from all its assets (excluding gold) is 3.6%, or more than BGL237MN. The central bank analysts hope that this yield will be sustained during the next year as well. This will enable BNB to once again raise the interest rate levels in mid 2001.

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