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Bulgarian president vetoes changes to Bank Insolvency Act

Author Mario Tanev
Bulgarian president vetoes changes to Bank Insolvency Act Author: Bulgarian presidency / License: All rights reserved

SOFIA (Bulgaria), February 21 (SeeNews) - Bulgaria's president Rumen Radev said on Wednesday he vetoed changes to the country's Bank Insolvency Act passed by parliament on February 9.

"The president supports the efforts of the National Assembly for increased efficiency in defending public interest in bank insolvency proceedings, however this should be accomplished by measures that are in line with the Constitution," a statement posted on the website of the president's office reads.

Radev's veto refers to several changes to the Bank Insolvency Act, as well as the general and final provisions to the act, which envisage that the changes will be applied retroactively.

If the parliament overturns the presidential veto, Radev can ask the Constitutional Court to rule on the issue.

The changes were proposed by three members of parliament from opposition Movement for Rights and Freedoms party, who said they are aimed at ensuring the proper handling of the disposal of assets of bankrupt Corporate Commercial Bank (Corpbank).

Corpbank, Bulgaria's fourth largest lender at the time, was hit by a run on deposits in June 2014 and subsequently collapsed.