Банкеръ Weekly

Briefs

CONTROL OF BANKRUPT BANKS DIVIDED

The Parliamentary Legal Commission divided most functions for managing bankrupt banks between the court and the Bank Deposit Insurance Fund (BDIF). This was done when discussing the Bank Insolvency Bill on July 25. The deputies unanimously decided that magistrates should be relieved from controlling the expedience of the decisions, made by the trustees in bankruptcy. The entire procedure of appointing them and supervising their actions shall be carried out by the Bank Deposit Insurance Fund. It will also fulfill the role of a general meeting of creditors, as such a body has not been projected for insolvent banks.This decision was objected by Svetoslav Louchnikov, MP from the Union of Democratic Forces (UDF). According to him, there should be a general meeting of creditors at failed financial institiutions. If more than 50% of the receivables are due to the BFIF, this could be accepted, but if this percentage is lower, what are the grounds for the fund to dispose of the mass of insolvency. This is absurdity, Mr. Louchnikov commented. The Chairman of the Parliamentary Economic Commission Valeri Dimitov remided Mr. Louchnikov that the Bulgarian National Bank will continue to supervise these activities and guarantee the interests of depositors.The remuneration of trustees in bankruptcy also provoked disputes. Under the draft bill, they shall get a percentage of the sold property of insolevent banks, but not less than 10 minimum monthly salaraies. The MPs approved the proposal, moved by Mr. Louchnikov and Chetin Kazah from the Movement for Rights and Freedoms (MRF), stipulating eleimination of the lower threshold of remuneration.The main issues, that remained to be discussed during the next session of the Parliamentary Legal Commission, are connected with specifying BFIF's decisions that could be litigated in court. So far it has been decided that the budget of the trustee in bankruptcy and and the programme for selling the failed banks' property shall not be liable to litigation.

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