President Vetoes Revisions to Bank Bankruptcy Act


President Vetoes
Revisions to
Bank Bankruptcy Act

Sofia, February 21 (BTA) – 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 Bankruptcy Act, adopted by Parliament on February 9, the head of State’s press secretariat reported Wednesday.

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.

According to the head of State, Bulgarian society needs to know the specific dimensions of these amendments’ consequences. 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.