Cash Credit to Challenge Bulgaria C-Bank Sanctions in CourtFinance | January 25, 2016, Monday // 12:14| views
The Bulgarian National Bank (BNB)'s headquarters in downtown Sofia. File photo, BGNES
Cash Credit, a Bulgarian non-banking financial institution, is taking the Bulgarian National Bank (BNB) to court over the latter's decision to impose sanctions on it for issuing credit card without having a license to do so.
The company has said that the BNB did not cite any motives for its ruling.
Last week the central bank of Bulgaria said Cash Credit did not meet the requirements for capital, organization structure and internal control systems.
It also fined Cash Credit for offering an e-money service without having the authorization needed.
The company had earlier announced it would star to issue the so-called "Cash Card" for its customers who have been granted a credit of up to BGN 2000 (EUR 1000). It said the cards could be used at POS terminals as a normal credit or debit card, but the BNB is now disputing this.
Cash Credit points to the fact its assets are worth BGN 5.7 M and its intial capital was worth BGN 7.4 M according to the Commerce Register, whereas under BNB rules a company needs to have a capital equal to or bigger than BGN 0.7 M to offer e-money services.
Cash Credit's e-money services, on the other hand, have been offered on the Bulgarian market since October 01, 2014.
The company maintains its cards will remain valid even after the ruling, because they were issued by an unnamed banking institution.
We need your support so Novinite.com can keep delivering news and information about Bulgaria! Thank you!