Bulgarian Socialists Summon Sufficient Support for Constitutional Appeal of New Debt of BGN 16 B

Business » FINANCE | June 18, 2015, Thursday // 12:35
Bulgaria: Bulgarian Socialists Summon Sufficient Support for Constitutional Appeal of New Debt of BGN 16 B Yanaki Stoilov, MP from the Bulgarian Socialist Party, photo by BGNES

The Bulgarian Socialist Party (BSP), the Alternative for Bulgarian Revival (ABV) and independent MP Velizar Enchev have collected 48 signatures in favor of referring to the Constitutional Court the ratification of the contract for the issue of new debt worth up to BGN 16 B.

On February 10, Bulgaria’s government informed that it had chosen four banks to manage its EUR 8 B bond program over the next three years - Citigroup Global Markets Ltd., HSBC Plc., Societe Generale, Unicredit Bank AG.

Under a bill drafted by the government, the maximum maturity of the bonds was set at up to 30 years and the maximum interest rate was fixed at up to 10%.

A petition to declare unconstitutional the ratification of the contract with the four banks needs to be backed by 1/5 of all MPs.

BSP MP Yanaki Stoilov announced Thursday that the proposal of BSP had been backed by 8 MPs of ABV and by one independent MP, Velizar Enchev.

The motion is expected to be submitted to Bulgaria’s Constitutional Court next week, according to reports of the BGNES news agency.

The decision of KS will not have retroactive effect, i.e, if the court rules against the debt, a part of it, which has not been issued yet, will not be issued.

Asked whether the move indicated that left-wing formations ABV and BSP would work together at the upcoming local elections in autumn, Stoilov said that the matter was yet to be discussed in talks between the two parties.

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Tags: ABV, BSP, Bulgarian Socialist Party, Constitutional Court, Velizar Enchev, Alternative for Bulgarian Revival

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