AMENDMENTS TO THE LAW ON BNB WITH EUROPEAN TWANG
The amendments to the Law on Bulgarian National Bank (BNB) correspond to the requirements of the European Central Bank (EIB), the members of the parliamentary Commission on European Integration found out on September 8. The MPs will recommend that the National Assembly approve on a first reading the amendments prepared by the Central Bank to the law that regulates its activities. With no debates and just two insignificant changes, the members approved unanimously the amendments proposed by the BNB Deputy Governor Tsvetan Manchev and the adviser to the Governing Board Kalin Hristov. The same happened when the Budget and Finance Commission read the bill for the first time on July 8.That indicates that even political controversies are fading away, when it comes to harmonisation of the regulations of BNB's activities with the ones operating in the European system of central banks. In fact, the European requirements which BNB and the legislators should take into account allow no chances for manoeuver and neglect.The main factor the amendments had to take into account was to guarantee the independence of the central bank and the members of its Governing Board. According to the new art. 14 included in the bill, the mandate of a member of the board can only be interrupted earlier if he does not meet the requirements needed to do his duties or if he is unable to do them for more than six months. As the members of the Commission on European Integration insisted, a regulation was added saying that would also happen if he is acknowledged as the executor of a grave violation.Among the other major regulations included in the bill are the ban on BNB's direct financing of the state and municipalities, the increase of transparency in the bank's activities, and the protection of the euro against forgery.The other significant amendment refers to the main purpose of the central bank. From now on, it will be to keep the price stability thanks to all of its legal rights. The text is taken from the regulation of the activities of the European Central Bank. Similarly, BNB will be engaged with acting in accordance with the principles of the market economy and the general economic policy for stable growth.The amendments to the Law on BNB will probably pass on first reading in the Parliament next week. In case there are no recommendations, the amendments may be approved and become effective in October.