site.btaCabinet Approves Action Plan for Bulgaria's ERM II, EU Banking Union Entry

Sofia, August 22 (BTA) - At its regular meeting on Wednesday the government approved an action plan for Bulgaria's joining the ERM II and the banking union by July 2019, the government's information service said.

The plan includes measures which are to be implemented by the end of June 2019. Some of the measures are:

-- strengthening the supervision framework in the banking sector in close cooperation with the European Central Bank and carrying out the necessary preparations, in line with existing procedures, by implementing a number of amendments to the national legislation, which are expected to be approved by Parliament towards the end of 2018;

-- introduction by the end of 2018 of macro-prudential instruments in the Lending Institutions Act, which will make it possible to impose on system level requirements towards borrowers;

-- strengthening the supervision of the non-banking financial sector (pension funds and insurance companies);

-- improving the framework concerning bankruptcy, after a review of the legislation, and preparing relevant legal amendments;

-- strengthening the framework for counteracting money-laundering;

-- updating the framework for management of state-owned companies through review and assessment of the legislative, regulatory and functional framework and making recommendations intended to overcome discrepancies between the national legislation and the good international practices; drafting legal provisions in line with recommendations from the OECD;

-- ratification by Parliament of the Agreement on the transfer and mutualisation of contributions to the Single Resolution Fund.

The implementation of the measures ensures that Bulgaria will fulfil the commitments it undertook in the June 29 letter of commitment for entry in the ERM II and the banking union.