Bulgarian Parliament Overturns Presidential Veto On Amendments To Bank Insolvency Law

Bulgarian MPs voted on March 7 to overturn President Roumen Radev’s veto on the bill of amendments to the Bank Insolvency Act, The Sofia Globe reported. The motion carried with 129 MPs in favour, 40 opposed and no abstentions. Radev vetoed the bill on February 21, arguing that some of the provisions had retroactive effect, which breached the principle of the rule of law. “The president supports the efforts of the National Assembly for greater efficiency in defending the public interest in bank insolvency, but that must be achieved using constitutional means. In that regard, the head of state has objections to some of the transitional and final provisions of the law, which retroactively re-regulate the legal effects of acquired rights and debts repaid, in breach of the rule of law,” the presidency’s media office said in a statement at the time. The bill, authored by MRF MPs Yordan Tsonev, Delyan Peevski and Hamid Hamid, aims to suspend the cession contracts involving an insolvent bank’s receivers – deals in which depositors in the insolvent bank would sell their claims to the bank’s debtors, who would then cancel all or part of their debts using the newly-acquired deposit claim. Read more.