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Parliament adopts at first reading amendments to Bank Insolvency Act

The National Assembly has adopted at first reading amendments to the Bank Insolvency Act, moved by the Budget and Finance Committee chair Menda Stoyanova and a group of lawmakers. In the motives the lawmakers write that the development of loan and payment services in Bulgaria has led to considerable growth in the number of banks and their clients. The effective terms and procedures at the disposal of bank syndics at present do not defend sufficiently the interests of the big number of bank depositors as well as the ones of other creditors. The amendments give more opportunities for use of modern technologies and of the Trade Register system for accelerating the spread of information in case of bank insolvency. The information will become available to more clients, including foreign clients and creditors of the bank faster, giving them the opportunity to inform themselves about the lists.

The current law contains a complicated and cumbersome procedure for review of the bank creditors’ objections regarding their claims against the bank.

In addition, proposed amendments to the Independent Financial Audit Act introduce an open voting procedure for making decisions to withhold an independent auditor’s license. The proposed amendments foresee the rules and procedures, and the system of control over the quality of the registered auditors’ work to be set up by the Commission for Public Oversight over Registered Auditors and the Managing Council of the Institute of Certified Public Accountants.

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