Cash Credit to Challenge Bulgaria C-Bank Sanctions in Court

Business » FINANCE | January 25, 2016, Monday // 12:14
Bulgaria: Cash Credit to Challenge Bulgaria C-Bank Sanctions in Court The Bulgarian National Bank (BNB)'s headquarters in downtown Sofia. File photo, BGNES

Cash Credit, a Bulgarian non-banking financial institution, is taking the Bulgarian National Bank (BNB) to court over the latter's decision to impose sanctions on it for issuing credit card without having a license to do so.

The company has said that the BNB did not cite any motives for its ruling.

Last week the central bank of Bulgaria said Cash Credit did not meet the requirements for capital, organization structure and internal control systems.

It also fined Cash Credit for offering an e-money service without having the authorization needed.

The company had earlier announced it would star to issue the so-called "Cash Card" for its customers who have been granted a credit of up to BGN 2000 (EUR 1000). It said the cards could be used at POS terminals as a normal credit or debit card, but the BNB is now disputing this.

Cash Credit points to the fact its assets are worth BGN 5.7 M and its intial capital was worth BGN 7.4 M according to the Commerce Register, whereas under BNB rules a company needs to have a capital equal to or bigger than BGN 0.7 M to offer e-money services.

Cash Credit's e-money services, on the other hand, have been offered on the Bulgarian market since October 01, 2014.

The company maintains its cards will remain valid even after the ruling, because they were issued by an unnamed banking institution.

We need your support so can keep delivering news and information about Bulgaria! Thank you!

Finance » Be a reporter: Write and send your article
Tags: Cash Credit, Bulgarian National Bank, BNB, e-money, credit cards
Advertisement All Are Welcome! Join Now!
Bulgaria news (Sofia News Agency - 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." (Sofia News Agency - 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