Bulgaria’s President Vetoes Amendments to Bank Insolvency Act

Bulgaria’s President Rumen Radev has vetoed paragraphs 5, 6 and 7 of the Transitional and Final Provisions of the Act to Amend and Supplement the Bank Insolvency Act, adopted by Parliament on February 9, the head of State's press secretariat announced on 21^st of February as reported by BTA.

The amendments in question were moved by three MPs of the Movement for Rights and Freedoms (Delyan Peevski, Yordan Tsonev and Hamid Hamid) and prompted by the failure of Corporate Commercial Bank (Corpbank).

In his reasoning, the President says that he supports Parliament's efforts towards greater efficiency of the public interest's protection in bank bankruptcy proceedings, but this efficiency should be achieved through means that conform with the Constitution. The vetoed paragraphs re-regulate in violation of the rule of law past legal consequences, acquired rights and extinguished obligations.

The Head of State says that the Bulgarian society needs to know the specific dimensions of the consequences resulting from these amendments. When deciding to apply such an extreme measure, the National Assembly should openly debate on the collaterals to be made void, the number of transactions of stocks and shares to be made relatively invalid, and the approximate value with which the bankruptcy amount of Corpbank will be increased following the law's implementation, the President's reasoning reads.

source: BTA