Amendments to Bulgaria’s Bank Insolvency Act Pass 2nd Reading in Parliament

Finance | July 29, 2015, Wednesday // 21:30|  views

Photo by BGNES

Bank Insolvency Act amendments aimed at allowing easier access of creditors to information related to the insolvency proceedings passed second reading in Parliament on Wednesday.

Under the newly adopted provisions, the list of creditors who have submitted claims against a bank undergoing insolvency proceedings will be published in the Business Register.

The amendments to the Bank Insolvency Act were backed by 91 MPs, with no votes against and two abstentions.

All other documents prepared by the liquidators, which are related to the rights of the creditors, such as the lists of approved claims, of challenged claims, of objections, etc, will also be accessible via the Business Register, according to

The main reason behind the changes is to ensure that creditors of a bank undergoing insolvency proceedings are informed faster about the circumstances related to the exercise of their rights.

The legal amendments also alleviate the procedure for the submission and review of creditors’ objections to decisions of the liquidators.

Under amendments to the transitional and final provisions of the Bank Insolvency Act, which change the Independent Financial Audit Act, audit firms face a penalty amounting to up to 10% of their revenue for the preceding financial year if they commit violations in the checks of annual financial statements of enterprises of public interest, including banks.

The amendments also envisage an open vote by the Commission for Public Oversight of Statutory Auditors on decisions related to disqualification.

The vote and motives of each of the participants in this procedure are to be included in a protocol from the respective meeting of the Commission for Public Oversight of Statutory Auditors and the protocol is to be published on the website of the authority.

The control systems for auditors from the Commission also change.

In the case of an audit of an enterprise of public interest, the new rules require rotation of audit firms, not just rotation of auditors within a company.

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Tags: Bank Insolvency Act, insolvency proceedings, business register, audit report, creditors, liquidator


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