Dear Valued Partner,

As the Coronavirus situation continues to evolve worldwide, I would like to update you on the situation in Bulgaria and share with you an insight on Fibank’s continuous commitment to stand by our clients, providing them relief in these difficult times. 

Bulgaria

Bulgaria COVID-19 MeasuresThe first case of COVID-19 was confirmed in Bulgaria on 8 March 2020. On March 13 the Government declared 1 month-long State of emergency, which was later extended until 13 May. Bulgaria introduced strict curbs on travel between cities and abroad, closed its boarders for people, traveling from countries with high level of reported cases, closed schools, restaurants, bars, shopping centers and restricted access to parks. In grocery stores and pharmacies an 8:30 to 10:30 time slot was officially dedicated for people over 60years only, in order to isolate and protect that most vulnerable group.

Social distancing became the new standard of living but the quick and strict measures, instilled by the Bulgarian government lead to favorable results. Since the first confirmed case of COVID-19 on 8.3.20 until today (10.04.20) the total number of reported cases in the country is only 624, far less than in most other European countries.

Banking Sector and the Bulgarian National Bank 

The Bulgarian Banking system enters this challenging period in a strong condition, proven by the successful results from the recent AQR and stress tests, conducted by the ECB in 2019. Banks in Bulgaria are in good health, well capitalized and over-liquid. The good state of our banking sector is the foundation upon which the central bank (as the regulator and supervisor) will build and apply measures consistent with the new situation.

The currently announced measures are the following:

1. Smoothening the operation of the monetary regime and the infrastructure, including cash circulation, payment systems and the BNB’s activities as a fiscal agent of the government; aimed at creating additional fallback capacity ensuring the continuity of functions that are of critical importance for the state and the economy.
2. Further strengthening of the capital and liquidity base of the commercial banks in the amount of BGN 9.3 billion. These measures, already completed by the commercial banks, cover capitalization of the full profit from 2019 in the sector, cancelling the intended increases of the countercyclical capital buffer and repatriating liquidity from foreign markets.
3. Temporary moratorium that suspends or postpones payments on bank loans, following the common EU criteria and guidelines adopted by the European Banking Authority.  

The Bulgarian Government and Bulgarian Development Bank

The Bulgarian parliament has launched a so called 60/40 scheme offered by the state to encourage and support companies to keep their employees. The government will provide cash to companies, seriously affected by the crisis, who decide to keep their employees during the period and will cover 60% of the monthly salaries and social-security contributions; the company will have to provide the other 40%. The budget for the program will be around BGN 1Bln.

In addition the Bulgarian Government has announced its decision to increase the capital of the state owned Bulgarian Development Bank (BDB) with BGN 700 million to be used for two guarantee programs, aiming at supporting individuals and businesses, who are affected by the corona virus crisis. 

BGN 500 million will be devoted for working capital loans, to be provided to business and BGN 200 million will be devoted for interest and fee - free consumer loans (up to BGN 4,500 per recipient) for citizens on unpaid leave. Both programs are ambitiously targeting their start by the end of April and will engage local banks, partnering with BDB, which will be providing the loans to the end beneficiaries.

Fibank Update

Fibank Continuity of Service

Given the current challenges we face and following the declaration of the State of Emergency in Bulgaria, Fibank has activated its business continuity protocols. The Bank has taken a serious of measures to ensure its operations are uninterrupted and its staff and clients are safe and protected. We are happy to inform you that Fibank has remained and remains fully functional, serving our client and counterparties and obligation on time and with the same award winning customer service as always. 

Among the long list of measures taken to maintain continuity of our business and keep our employees and clients healthy we have:

• Initiated a work from home protocol for all staff, who’s duties can be performed remotely
• Split the team into independent shifts, in a way ensuring employees from each shift do not meet both neither in their working time nor during their time off
• Established an internal hotline for all COVID-19 related questions and concerns
• Supplied all staff with protective materials, disinfectants, masks, gloves, etc.
• Mounted protective glasses at client service points for both staff and client personal safety
• Instilling a Social Distance protocol, ensuring a minimal distance between clients in all offices

Fibank Corporate Social Responsibility Program

Being a numerous recipient of “Bank of the client” award in Bulgaria and being devoted to servicing our clients and community in the best way, Fibank has undertaken a series of initiatives to help our clients and the general public.Some of the programs are listed below:

• Fibank was the first Bank in Bulgaria to offer a “loan vacation” to its client, allowing those of them whose personal or business cash flows were affected by the coronavirus pandemics, to postpone interest and principal on their loans
• Developed an online application for loan renegotiation
• Offered our clients free remote registration for online banking services
• Offered our individual clients a FREE online banking package allowing an unlimited number of free online transactions within Fibank and within Bulgaria
• Donated 1000 COVID-19 tests to 4 medical centers to be used for free testing. The donation covers the tests along with the costs of the testing procedures to be performed at the patients’ houses or the medical facilities.

Fibank Management Board Changes

Mr. Nikola Bakalov succeeded Mr. Nedelchev as a CEO of Fibank. Mr. Bakalov is a long-standing Fibank employee and a manager with extensive experience in banking and insurance. He is a well-respected executive, since 2011 of Allianz Bank Bulgaria and since 2013 of FiHealth Insurance AD, Fibank Group’s health insurance arm. Fibank’s supervisory board has entrusted Mr. Bakalov, given his extensive knowledge of the banking system and of Fibank to lead the bank through the challenging times ahead. It should be noted that Mr. Nedelchev, who will continue to work with Fibank on strategic projects, is an investment banker, whereas Mr. Bakalov has extensive experience in retail banking, which is needed under the current conditions.

Mr. Yanko Karakolev will succeed Mr. Jivko Todorov as a Chief Financial Officer and Member of the Managing Board as soon as he receives the formal approval from the regulator. Mr. Karakolev joined Fibank’s team back in 1999 as an accountant. From 2007 to 2011 he is a deputy Director of Financial Department, becoming its Director in 2011. Mr. Karakolev is a well-respected professional and economist. He holds a masters degree in Finance from the University for National and World Economy.

Mrs. Ralitsa Bogoeva will become Fibank’s new Chief Retail Banking Officer (CRBO) as soon as she receives the formal approval from the bank’s Supervisory and Management Boards. She will be overseeing the following Departments: Retail Banking, Cash Management, Gold and Numismatics, Card Payments, Private Banking, Organization and Control of Client Servicing.
Mrs. Bogoeva joined Fibank in 2002 as a loan administrator. From 2003 until 2011 she is a deputy Director of Retail Banking. From June 2011 until 2018 she is a director Internal Audit. In June 2018 she was appointed Chief Information Technology Officer. Mrs. Bogoeva holds a masters degree in Accounting an Control from the University for National and World Economy.