BNB Demands 10-Year Sentence for Spreading False Bank Information
Bulgarian National Bank (BNB) proposes amendments to the Penal Code envisaging imprisonment for those disseminating misleading information about banks.
The institution has tabled its proposal containing suggested legal changes to Parliament's Budget and Finance Committee headed by liberal lawmaker Yordan Tsonev (DPS), the bank said in a message to the media.
BNB believes an Article 252 should be created in the Penal Code's Crimes against the Monetary and Credit System section saying those who "disseminate misleading or untrue information on a bank or a financial institution that could create panic among the population, shall be punished with five to ten years of imprisonment".
A fine varying from BGN 5000 to BGN 10 000 should also be imposed, the bank believes.
It also demands that the same sentence be applied to those causing "significant damage" or having received "significant illegal revenues" with aforementioned activities.
The proposal comes after rumors forced a number of people into withdrawing their money from Bulgaria's Corporate Commercial Bank (KTB) and, more recently, First Investment Bank.
This caused KTB to ask that BNB place it under special supervision.
At FIBank, some BGN 800 M (EUR 400 M) were withdrawn just in hours after customers received anonymous text messages in which they were advised to do so.
BNB's demand is in line with discussions at the Presidency Sunday when the banking system and measures to tackle infringements on its stability were among the main issues discussed, alongside early elections.
Central bank Governor Ivan Iskrov was among those invited to the consultations.
Bulgarian Interior Ministry and the State Agency for National Security (DANS) launched Friday a probe into attempts to destabilize the banking system.
DANS later detained three over alleged involvement in the informational attack on First Investment Bank.
- » Experts: Bulgaria is Among the Least Endangered Countries in the Currency Crisis Happening Around the World
- » Economic Growth in Bulgaria is Lower than Expected - 3.4%
- » Real Estate Market Could Lead to Europe's Next Crisis, ECB Says
- » Eastern Europe Block Is Not a Chain Anymore
- » Turkish Inflation Surged to 15-year High in August
- » Bulgaria Sees Fiscal Surplus at 2.4%/GDP at End-August
Malak, the mortgage system in Bulgaria is not dissimilar to that of other countries, fall behind with your payments and you forfeit your house which is sold by public auction. This has happened to millions worldwide since 2007 finanicial crisis. I see nothing much wrong with this system as the lenders rights and wealth have to be protected, banks are not a social wellfare system they are a business and have investors who can be small investors or even someones pension money. What maybe wrong (I don't know in Bulgaria) is that the investigations banks make into a persons ability to pay back a mortgage may not be robust enough.In the Uk they have found this and are setting it right so many thousands who might have got a mortgage previously will not now be eligible. The warning is for someone about to take out a mortgage is to read the small print, ask for explanations if you do not understand anything and employ a good lawyer to go over the contract with the bank.
Not enough, this scum should pay with their entire wealth. Their actions could have robbed millions of their life savings, undermined the state bringing even more austerity and even rocked the EU economy, they should pay dearly and send a message to other would be hackers that this action will not be tolerated and the punishment will be dire for them. I have not been affected by this action but am fully aware of the potential consequences and they are not nice.
A dissent person would demand not bankruptcy of the banks but regulation of some unethical banking practices.
So how the proposed law will affect the natural discontent of the people towards unethical practices??
It might turn to be an unjust law that is used to intimidate and prevent possible justified criticism.
How the banking system in Bulgaria works!
If you miss one, two or three monthly payments the bank has the right to make a public auction of you home.
The price of the home for the auction is formed by the private judge and it equals the market price of the home minus 25%. This price is not related to the price of the credit you have for the mortgage.
If the home is not sold during the first auction, not earlier than a month after it another action is made. This time the price is equal to 80% of price of the first auction.
Than if the home is sold the person that had the mortgage will continue to be in debt with a sum that is equal to the difference between the mortgage and the price to which the home was sold.
It is possible, and if fact it happens, that after these procedures the person will be in debt with a sum close to half of the mortgage.
This is life sentence for the person in debt given the high unemployment rate and low incomes.
I do not know if it is the same in other countries.
If someone can share this experience, he or she is welcomed.
Usually the Bulgarians are not aware for the rights and actions of the banks. They make the mortgage and hope for the best. Information about the bank procedures was not made public in Bulgaria until recently. It was provided not by the banks but by the real estate agents.