The bridge bank will be financed by the central bank’s deposit guarantee fund and will be empowered to take over assets and liabilities of any insolvent bank for a period of up to two years or until ownership cane transferred to a suitable investor.
“Given the current economic situation in international markets and the increasing risks for the financial stability, it is of utmost importance to improve the instruments available to the central bank by implementing a package of measures aimed to stabilize troubled crediting institutions,” the government said in a statement.
The project was drafted after consultations with the International Monetary Fund.