Bulgarian National Bank Consults ECB on Fast Cash Loan Firms

Business » FINANCE | February 2, 2014, Sunday // 14:42
Bulgaria: Bulgarian National Bank Consults ECB on Fast Cash Loan Firms The Bulgarian National Bank HQ in Sofia, photo by vesti.bg

The Bulgarian National Bank (BNB) has consulted the European Central bank on oversight of companies offering quick loans of up to BGN 400, according to socialist MP Rumen Gechev.

In an interview for Pressa daily, Gechev informed that BNB had also asked whether it could

Fast cash loan companies are not regulated by BNB under Bulgaria's existing legislation and the law only requires that they be registered with the BNB.

The only requirements regarding fast cash loan companies are a minimum amount of capital to be paid up of BGN 250 000 and the submission of quarterly financial reports for statistical purposes.

Bulgarian MPs intend to tighten regulations on non-banking institutions, introducing a licensing regime and a minimum capital of BGN 5 M.

Yordan Tsonev, Chair of the parliamentary budget committee, assured that the Bulgarian Socialist Paty (BSP) would coordinate its ideas with all competent bodies before submitting them to Parliament.

Colleagues of Tsonev, however, explained that BNB was unwilling to issue permits to these companies and insisted that this activity had to be carried out by the Financial Supervision Committee.

The dispute caused Bulgaria to request information from the ECB, including the matter of regulating interest rate ceilings.

According to Pressa daily, there are two options for the interest rate ceiling, including setting a maximum percentage or stating that the interest rate cannot exceed twice the average market rate.

"BNB does not usually publish its correspondence with Bulgarian or EU institutions. When we have something to say, we will state it clearly and openly," BNB Spokesperson Alexander Urumov declared.

We need your support so Novinite.com can keep delivering news and information about Bulgaria! Thank you!

Finance » Be a reporter: Write and send your article
Tags: Bulgarian National Bank, BNB, European Central Bank, ECB, fast loan companies, fast loans, Rumen Gechev, Bulgarian Socialist Part, BSP, Yordan Tsonev

Advertisement
Advertisement
Bulgaria news Novinite.com (Sofia News Agency - www.sofianewsagency.com) is unique with being a real time news provider in English that informs its readers about the latest Bulgarian news. The editorial staff also publishes a daily online newspaper "Sofia Morning News." Novinite.com (Sofia News Agency - www.sofianewsagency.com) and Sofia Morning News publish the latest economic, political and cultural news that take place in Bulgaria. Foreign media analysis on Bulgaria and World News in Brief are also part of the web site and the online newspaper. News Bulgaria