NEW EXPORT INSURANCE RULES
The state should guarantee the insurance of Bulgarian investments abroad accoridng to the draft amendments to the Export Insurance Act, which should be voted by the Parliament next week. The Council of Ministers has adopted the amendments even in early May, but almost seven months later the MPs have not yet voted the final version of that law.
Other amendments include the transformation of the Bulgarian Export Insurance Agency (BEIA) into institution, in which the state will hold not less than 70%, while currently its share is 100%. The State Insurance Institute (DZI) is the other shareholder, besides the Ministry of Economy.
According to the amendments, the scope of export insurance should increase, adding credit guarantees and financial losses related to the production of exportable goods to the current export insurance activities.
Besides that, after the amendments, the Bulgarian National Bank governor should become a member of the Inter-institutional Export Insurance Council, which monitors the activities of the agency. Thus the insurance policies can be used as collaterals for launching credits. According to the amended version, the Council will be chaired by the Minister of Economy, while until now it was headed by the Minister of Trade and Tourism.
Bulgarian Export Insurance Agency was established through a special law in 1998. The function of the agency is to insure on its behalf, but for the account of the state a wide range of commercial and political risks. The budget of the export insurance agency for the current year amounts to approximately BGL30,000. Immediately after adopting of the amendments in the Export Insurance Act, voting of the agency's next year budget is expected. The budget requested by BEIA is BGL70,000, but according to some sources the Council of Ministers will hardly vote for more than BGL30,000.