The National Assembly amended the Bank Deposits Guarantee Act on first reading on Friday, raising the guarantee on private savings from 40,000 leva to the lev equivalent of 50,000 euro.

Two bills were approved - one sponsored by Roumen Ovcharov, Milen Velchev and Yordan Tsonev of the ruling coalition, and another by independent Maria Cappone. Motions for amendments by independents Mincho Hristov and Stela Bankova were turned down.

Cappone suggested that the government guarantee consumer savings of up to 50,000 euro. She cited the latest meeting of the EU finance ministers, at which it was proposed that governments guarantee private deposits of up to 50,000 euro.

The three MPs of the government coalition proposed that the guaranteed savings be set at 100,000 leva. The proposed amendment envisages government guarantees for debt instruments issued by commercial banks. In case of a shortfall, the fund for bank deposit guarantees can borrow from the national budget after approval by the Council of Ministers.

Later on the MPs will hold a debate on a question by Ivan Kostov of the opposition Democrats for Strong Bulgaria to Prime Minister Sergei Stanishev about the government policy amid the global financial crisis.

Source: BTA