BULGARIA. 



THE INSURANCE DEPARTMENT OF THE CENTRAL BANK 



OE BULGARIA. 



by Dr. Athanasius Sabbeff, Manager of the Central Co-operative Bank of Bulgaria. 



The Central Co-operative Bank of Bulgaria was founded in 1910. It 

 began working at the beginning of 1911. It has two departments, one 

 for credit and one for insurance (hail insurance and horned cattle insurance). 

 These two departments are independent of each other as far as liability goes, 

 for the credit department has no liability with regard to the insurance 

 department, nor has the latter any with regard to it. 



Each department has its manager. The two managers and the man- 

 aging director of the Bank form the board of management of the Bank, which 

 decides all questions relating to either department. Consequently, this 

 is the sole Unk between the two departments. Each has its special book- 

 keeping service. The funds for the Credit Department are supplied di- 

 rectly by the National Bank of Bulgaria, the State Credit Institute and the 

 Agricultural Bank of Bulgaria. There is also another fund of 1,000,000 lewa 

 to guarantee bonds the Central Bank of Bulgaria might eventually intend 

 to issue. This fund also is contributed half by the National and half by 

 the Agricultural Bank. 



Finally, the capital of the credit department is formed b^'- means of con- 

 tributions that all the co-operative societies regularly admitted as mem- 

 bers of the Bank must pay. It amounts to 111,700 lewa. The total capital 

 of the Bank at the end of 1912 was, therefore, 5,611,700 lewa. 



The insurance department, in its ttirn, has two divisions, one for insur- 

 ance of agricultural produce against hail, the other for insurance of horned 

 cattle. 



The first has a fund, which must be kept intact, amounting to 1,000,000 

 lewa, fully paid up by the State, and the second one of 500,000 also contrib- 

 uted by the State. 



The State has, further, engaged to grant these divisions subsidies. The 

 subsidies amount to 300,000 lewa a year in the case of the hail insurance divi- 

 sion and 100,000 lewa a year in that of the horned cattle insurance divi- 

 sion. 



To these amounts must be added the insurance premiums, of course 

 in proportion to the amounts assured . 



