Send to Kindle
The Bulgarian National Bank says it has received a letter from ECB head Mario Draghi warning against amendments to deposits-related legislation. Photo by EPA/BGNES
The European Central bank has warned against proposed amendments to the Deposit Insurance Act, saying they could constitute an infringement on the national bank's independence.
In a statement the Bulgarian National Bank (BNB), Bulgaria's central regulator, cites the letter from ECB signed by the European institution's head Mario Draghi.
The letter reportedly warns that the draft legislation will prevent the BNB from investing and managing reserves.
If the BNB is allowed to make provisional transfers to the Deposit Insurance Fund (DIF), the central bank's own resources and reserve could be severely limited, hindering tasks carried out by the bank within the European System of Central Banks, ECB has argued.
It has also opined that stability of Bulgaria's currency board might be put in jeopardy with such a move.
The Bulgarian government is considering to allow direct grants to the DIF as a proactive measure against possible developments similar to those at Corporate Commercial Bank (KTB), which forced Sofia to issue fresh debt to give KTB depositors access to their savings.
We need your support so Novinite.com can keep delivering news and information about Bulgaria! Thank you!
In its latest macroeconomic forecast released on Tuesday, the Bulgarian National Bank (BNB) anticipates a 2.2% increase in Bulgaria's Gross Domestic Product (GDP) for the year 2024, compared to 1.8% in 2023
Bulgaria is grappling with a sharp increase in counterfeit currency, with the Bulgarian National Bank (BNB) reporting a concerning surge in fake banknotes, particularly those of 100 BGN denominations
European Central Bank (ECB) Governor Christine Lagarde suggested on Wednesday that the ECB might implement interest rate cuts in the summer
Bulgaria's Gross External Debt stood at approximately EUR 42,410 million by the end of October 2023, marking a 3.7% decrease from the same period in 2022, according to data released by the Bulgarian National Bank (BNB)
During a parliamentary budget committee meeting, Dimitar Radev, the Governor of the Bulgarian National Bank (BNB), advocated for a strategic fiscal approach, proposing a 10% buffer allocation within the budget for 2024
In a recent meeting between the Economic and Social Council (ESC) representatives and the Bulgarian National Bank (BNB) Governor Dimitar Radev, the ESC reaffirmed its staunch support for Bulgaria's accession to the eurozone by January 1, 2025
Bulgaria's long-anticipated entry into the Eurozone may face a delay, as the country is unlikely to meet the inflation criterion required for the introduction of the euro on January 1, 2025
The price of retail lamb in Bulgaria has surged by 8.4% on an annual basis, according to statistics released by the Ministry of Agriculture and Food, with data sourced from SAPI indicating an average price of BGN 25.27 per kilogram as of April 10
According to recent data from the Confederation of Independent Trade Unions of Bulgaria (CITUB), the financial strain on Bulgarian households continues to intensify
Experts suggest that Bulgaria's admission to the Eurozone is more realistic in January 2026
February witnessed a surge in remittances from Bulgarians residing abroad, reaching a remarkable EUR 110.5 million, marking the highest value since last July
Amidst financial fluctuations and strategic fiscal decisions, Bulgaria's Minister of Finance, Lyudmila Petkova, unveils the nation's robust fiscal reserve, standing tall at BGN 10.9 billion as of April 18th
UN Happiness Report: Bulgaria's Astonishing Leap in Rankings
Bulgaria: 3 Regions With Lowest Life Expectancy - EU Report 2022
