site.btaReformist Bloc Believes Parliament Must Demand Resignations of BNB, Financial Supervision Commission Leaderships

Reformist Bloc Believes Parliament Must Demand Resignations of BNB, Financial
Supervision Commission Leaderships


Sofia, January 29 (BTA) - The Reformist Bloc (RB) believes that
parliament must demand the resignations of the financial
regulators' leaderships - the Bulgarian National Bank (BNB) and
the Financial Supervision Commission (FSC).

"It is necessary that together we ask for the resignation of the
 financial regulators' leaderships and if we do not get it, then
 suspend their terms in office through a decisive act by
Parliament and make urgent legislative changes to guarantee that
 the public won't suffer anymore from such irresponsibility,"
reads a declaration, read by RB Co-floor Leader Radan Kanev in
Parliament on Thursday. According to Kanev, when the financial
regulators refuse to take responsibility, it transfers to those
who elected them.

Kanev said that now is not the time to blame each other for the
poor decisions which led to unsuitable appointments and that
their consequences must be overcome jointly. During the years of
 the economic crisis, the financial regulators allowed the
leakage of over 20 billion leva in savings accounts from the
country, along with the investment of over two thirds of the
Bulgarian pension funds' assets abroad, instead of having them
work for the Bulgarian economy.

Instead of building trust, BNB and FSC turned into factors of
instability for the country's financial system. The doubts in
their competency, integrity and impartiality led to the need of
State financial aid for the banking institutions and to
unnecessary and dangerous tension surrounding the return rate
and assets of universal pension funds, Kanev noted.

The lack of trust in the financial sector and doubts that
financial supervision works in the public's interest, are
sufficient grounds to immediately resign, he said. According to
Kanev, when the savings and pensions of millions depend on one
official, then that person has neither the moral, nor the
professional right to persist in order to save their career, to
negotiate at the expense of the public interest, or in the worst
 case, to place their loyalty to shady patrons above the common
good.

Following the failure and loss of public trust, the leaders of
the financial regulators are no longer worthy of their office
and assigned responsibilities, the RB Co-floor Leader noted.
What is especially scandalous is that the FSC neglected its
powers when it had to defend the public interest, but abused
them by imposing excessive sanctions on media, which revealed
its idleness, Kanev said, apparently referring to the
record-high fines imposed by FSC on media outlets for running
stories on the financial crisis last summer, in which the
financial regulator saw attempts at market manipulations, and
after the journalists refused to disclose their sources of
information. 

What is needed right now, in Kanev's words, is to make a
transparent and high-quality choice, which will guarantee the
Bulgarian citizens that their savings will remain untouched.