Law on the Bulgarian National Bank

This document describes a law that designates Bulgarian National Bank (BNB) as the premier banking institution in Bulgaria. Highlighting the powers that would get conferred to the BNB after this law comes into effect, it states that BNB would function both as a supervisory and a regulatory authority of the financial system in Bulgaria.

The document is divided into chapters and provides information on:

• The general provisions of the law;
• Statutory fund and reserves that BNB has to maintain;
• Structure and management of the managing board;
• Monetary functions and operations of the Bank;
• Relations between the Bulgarian National Bank and the State.

Some of the salient features of the law are:

• BNB would function as the Central Bank of Bulgaria and has the exclusive powers to issue banknotes and coins;
• It has to report directly to the National Assembly on a regular basis;
• It would contribute in maintenance of the stability of the national currency through implementation of the monetary and credit policy as provided for by this Law, and to assist in the establishment and functioning of efficient payment mechanisms;
• The minimum reserve that BNB has maintain is 20 billion of the local currency;
• The Bulgarian National Bank would act as the official depository of the State.