site.btaUPDATED Central Bank Condemns Continue the Change for "Unacceptable Political Pressure"

The Bulgarian National Bank (BNB) Wednesday slammed the Continue the Change (CC) party for what it sees as "unacceptable political pressure" over its stance on how BNB is handling persons sanctioned for corruption . "BNB strictly complies with the applicable legal framework," the BNB said in a statement published on its website.

It came shortly after a statement released by Continue the Change which claimed that “the BNB cannot shield Bulgaria’s banking system from individuals sanctioned under the Magnitsky Act." Because of that, Continue the Change would seek the intervention of the European Central Bank. 

The back-and-forth between the central bank and Continue the Change started in late July when CC leader Assen Vassilev sent a question to BNB asking it why Municipal Bank has opened an account for the Movement for Rights and Freedoms whose only leader, Delyan Peevski, is sanctioned for major corruption under the Global Magnitsky Act. There Vassilev cites a position by the BNB of 2021 saying that banks should not be working with individuals sanctioned under the Magnitsky Act.

BNB pointed out Wednesday that additional responsibilities can only be assigned to the BNB by law, adopted in accordance with the European legal framework applicable to the European System of Central Banks.

BNB considers Continue the Change’s position to be “an unacceptable attempt to exert political pressure by a political force represented in Parliament, which is contrary to the law and the institutional order in the country.”

The BNB's statement noted that, through its chair, the political party effectively demanded the disclosure of banking secrecy outside the procedure provided for by law. In this regard, BNB pointed out that information on the balances and movements of bank accounts of specific individuals and legal persons is confidential. The request for its disclosure outside the statutory procedure constitutes a gross violation of the law and the rules on the protection of secrecy, the BNB stated.

Furthermore, BNB argued that the CC position calls for “taking action or issuing acts without legal basis”. The legal vacuum regarding the consequences of sanctions imposed by third parties remains unresolved by the executive and legislative authorities, the BNB said, adding that actions or acts of the central bank on this issue without legal basis are legally invalid. The relevant government acts on the matter have already been annulled by the court. Attempts to shift this problem onto the BNB constitute political interference and a violation of its independence, the central bank said.