The Romanian Insured Guarantee Fund (FGA) currently has RON 620 mln (EUR 124 mln) in cash to pay compensations to creditors of bankrupt insurer City Insurance.

Ziarul Financiar daily estimated, based on the past cases of bankruptcy in the insurance industry, that the total payments to creditors would reach EUR 500 mln.

Furthermore, the law provides for means to supplement these funds, explained, on September 28, Mona Lucia Cucu, deputy general director of FGA, after a debate in the senate's economic commission on the situation of City Insurance, Economica.net reported.

"FGA will start making payments starting with December, as applications are registered, and I am convinced that there are sufficient resources and at market level things will be adjusted in such a way that no one is affected by this bankruptcy," said Mona Lucia Cucu.

(Photo: Vlad Ispas/ Dreamstime)

andrei@romania-insider.com