Central Bank launches package of measures in response to Covid-19 pandemic

The Bulgarian National Bank (BNB) on March 19 announced a package of measures to ensure the functioning of the banking system in a pandemic. Similar actions have been taken by central banks around the world to reduce the risks in the financial systems because of the coronavirus situation.

The total value of the measures taken by the central bank is estimated at BGN 9 billion and BGN 300 million.

Bulgarian banks, which are branches of foreign entities, are required to capitalise all their profits for the past year. This means that more than a billion and a half BGN will remain in the country and will not be transferred to the parent banks abroad.

Bulgarian credit institutions should immediately reduce their exposure abroad, which means that 7

Billions of BGN deposited abroad will be returned immediately to the Bulgarian monetary system.

BNB has also taken additional measures to ensure the functioning of the currency board, money supply and payment systems.