site.btaNew Bulgarian National Bank Act Passed on First Reading

On Friday, Parliament adopted at first reading a new Bulgarian National Bank Act with 130 votes in favour, 45 against, and 9 abstentions.

The MPs of GERB-UDF, Democratic Bulgaria-Continue the Change, and the Movement for Rights and Freedoms voted in favour. Vazrazhdane voted against. Eleven MPs of the BSP for Bulgaria voted against and two abstained. Seven MPs of There Is Such a People abstained, and one voted against.

The provisions regulate a fundamental change from the strongly restrictive currency board arrangement introduced in Bulgaria in July 1997 to the assertion of currency sovereignty within the framework of the shared monetary sovereignty of the Eurosystem. The draft law regulates the status of the euro and determines the design of the national side of the euro coins and the introduction and withdrawal euro banknotes and coins.

It is envisaged that the new law on the Bulgarian National Bank will enter into force on the date specified in a Decision of the European Council on Bulgaria’s euro adoption.

The MPs set a period of five days for additional proposals to amend and supplement the Act between first and second reading.

Bulgarian National Bank Governor Dimitar Radev warned that Bulgaria's accession to the euro area would be blocked if the bill is rejected by the National Assembly.