Bulgarian Cabinet to Keep State Company Money Requirement

Finance | June 12, 2013, Wednesday // 19:05|  views

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Bulgaria's new cabinet will retain the requirement that a maximum of 25 % of the capital of sate companies be kept in a single bank, Finance Minister Petar Chobanov announced after a sitting of the Council of Ministers.

Currently, a six-month period is underway, in which the state companies can make changes to their bank accounts so that they meet the new rule, Darik news announced.

The order was issued by the previous caretaker government, when then-PM Marin Raikov stated that 54 % of all deposits of state companies are kept in a single bank.

According to Chobanov the decision to keep the requirement in force "indicates continuity", but its effects remain to be seen.

"As far as I know, the restrictions in the bank supervision concern the net currency exposure. We have this 6-month period to see the explicit effects and closely monitor what happens," Chobanov said.

Up to now, the new cabinet - formed on a mandate by the Bulgarian Socialist Party and chaired by PM Plamen Oresharski - demonstrates continuation of the policies of the caretaker government and expects results from them, the Finance Minister added.

The new rules for "deconcentration" of public funds were among the last policies introduced by the Raykov cabinet before it handed down power to its successor.

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Tags: Petar Chobanov, Marin Raykov, Plamen Oresharski, banks


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