Bulgarian MPs Approve Tough Measures for False Bank Info

Politics » DOMESTIC | July 16, 2014, Wednesday // 10:05
Bulgaria: Bulgarian MPs Approve Tough Measures for False Bank Info Photo by BGNES

Lawmakers gave first-reading green light to changes to the Penal Code envisaging up to 10 years of imprisonment for spreading misleading information on banks.

But some MPs argue some sections of the draft text should be more precisely defined.

Under amendment proposals submitted by Bulgaria's central bank BNB, those disseminating information potentially leading to a surge of panic among citizens could face between two and five years behind bars.

If such activity results in substantial damage to other people or illegally gives financial advantage to perpetrators, the latter could spend between five years and a decade in jail.

BNB's suggestions also include a BGN 5000 to 10 000 (EUR 2500 to 5000) fine.

The Bulgarian National Bank took the step in end-June, after Corporate Commercial Bank (KTB) depleted its liquidity following rumors of its financial state and was placed under special supervision.

Just a week later FIBank, Bulgaria's largest domestically-owned bank, saw around BGN 800 M withdrawn in hours for the same reasons.

Authorities described the events as results of attempts to destabilize the banking system.

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Tags: BNB, Corporate Commercial Bank, KTB, penal code, FIBank, imprisonment
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