site.btaApplicability of Disclosure of Bank Secrets Expanded

The applicability of disclosure of bank secrets by court order was expanded on Thursday as the National Assembly adopted on second reading transitional and additional provisions of the 2023 State Budget Bill, thus revising the Credit Institutions Act.

In addition to other circumstances, a court may now order the disclosure of a bank secret on a request by a public enforcement agent in connection with a pledge on, and the collection of, public receivables.

The provision was debated in the plenary chamber for more than an hour. It was opposed mainly by the parliamentary groups of There Is Such a People (TISP) and Vazrazhdane.

Petar Petrov (Vazrazhdane) warned that the provision will put the government and private creditors on an unequal footing.

Iskren Mitev (Continue the Change - Democratic Bulgaria) explained that the possibility will be used only when someone has failed to pay their taxes. He said the new rule is necessary to help the government collect public receivables.

According to Radomir Cholakov (GERB-UDF), the matter should be put to a separate debate rather than being lumped up with the state budget, because it is unrelated to the budget scheme. "I hate to see someone use an axe to perform complex brain surgery," Cholakov said. He noted that he was not seeking confrontation with the finance minister but hoped to start a discussion. TISP also called for a separate debate on the provision.