KEYWORDS TODAY:   RESIGNATIONBSPMalaysia Airlines Crash in Eastern UkraineKTB

HOT: » Bulgaria's government has stepped down

MPs 'Support' Imprisonment for Spreading False Bank Information

Business » FINANCE | July 1, 2014, Tuesday // 12:48| Views: 819 | Comments: 2
  • Send to Kindle
Bulgaria: MPs 'Support' Imprisonment for Spreading False Bank Information Yordan Tsonev. Photo by BGNES

Bulgarian lawmakers back a proposal envisaging jail for dissemination of false news on banks, Parliament's Finance Committee Chair Yordan Tsonev said.

"Amendments could not be introduced into the Criminal Code in less than two weeks," Tsonev was quoted as explaining by public broadcaster BNR after submitting to Parliament a proposal which his Committee received earlier by the Bulgarian National Bank (BNB).

The central bank suggests that those responsible for spreading misleading information regarding any bank or financial institution receive a sentence of 5 to 10 years of imprisonment and be imposed a fine between BGN 5000 and 1000.

BNB sent Monday its proposal for amendments to the Budget and Finance Committee at the Bulgarian Parliament, and the text was discussed at the Committee in a matter of hours.

Tsonev believes a similar measure could prevent any attacks on the stability of Bulgaria's financial and banking system.

The latest developments come days after two of the country's largest banks, Corporate Commercial Bank (KTB) and First Investment Bank were subject to alleged rumors prompting thousands of people to withdraw their assets.

As a result BNB placed KTB under conservatorship and had to restate its commitment to supporting the banking system after rumors spread about FIBank last Friday.

The EU also intervened by granting EUR 1.65 B of liquidity support for the sector, though making clear it considered it stable.

Tsonev asserted what happened at KTB was not related to withdrawing state assets from the bank.

Years ago, MPs were forced to adopt legal amendments after it was revealed vast quantities of the state's money were in KTB.

After the scandal, a threshold was imposed allowing a single bank to hold just up to 25% of state funds.

Finance » Be a reporter: Write and send your article
Tags: BNB, Budget and Finance Committee, Yordan Tsonev, KTB, FIBank, conservatorship, parliament, Criminal Code
Expats.bg All Are Welcome! Join Now!

Leave a comment


» To the forumComments (2)
#2
TinuzH - 2 Jul 2014 // 12:32:30

So if you question what government and/or it's officials say you get thrown in jail? Now there's a blast from the past. What's next the Stasi?

#1
EDC - 1 Jul 2014 // 18:32:47

Great news as long as it is the FAT CATS that started it that go to jail and not the ones who just obeyed the orders.

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