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The Bulgarian National Bank (NBB) will intensify its control over loans granted by commercial banks to related parties. This decision was taken by the Board of Directors of the NBB
According to the decision quoted by the newspaper "24 hours", every three months the coffers will be reported to the NBB for these newly granted loans. For purposes of accountability, the amount will be determined by their gross book value, as provided in the order. Requirements are introduced for banks' internal rules and procedures under which they will be approved, monitored and controlled. Banks and bank supervisors will also monitor the risks badociated with this type of loan.
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According to the rules, a loan is defined as an "internal exposure" when the receivers of the claim are the directors of the bank, the shareholders with more than 10% of the shares, the companies whose representatives are members of the board of directors. management of the lending bank.
Under the special order, businesses owned by spouses, brothers, sisters and close family members of owners or managers of the bank will also be credited. The requirements will also apply to companies in which the creditor bank participates in the management or the majority.
Loans will also control loans to intermediaries acting on behalf of related parties.
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The purpose of the monitoring measure is to prevent the concentration of credit activity in certain related parties, as well as to circumvent the practices of draining banks by lending to creditors linked. Negotiations on more advantageous terms for granting the loan, discounts on loan guarantees or loan repayment instruments will not be allowed.
It is recalled that it was precisely the credit of related parties in Bulgaria, indicated by the EC and the IMF on several occasions as a source of concern. The last case of this kind was where Brussels included us in the list of countries with excessive macroeconomic imbalances. This year, we came out of this list, although on very fine hair. We also recall that this week the Minister of Finance Vladislav Goranov officially wrote a letter saying that Bulgaria wants to join the waiting room of the euro area and the EU banking union.
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