Bulgarian Govt Adopts Changes to Central Bank Law in Preparation for ERM Entry
Bulgaria's government said on Wednesday it has approved amendments to the central bank law in accordance with its action plan for joining the Exchange Rate Mechanism II (ERM II) - the eurozone's waiting room, and the EU's Banking Union. The changes concern the central bank's institutional and functional independence, the government said in a brief statement following its weekly meeting. The proposed measures also envisage prohibitions on monetary financing and privileged access. In August, the government adopted the action plan in relation to the country's intention to join the ERM II and the Banking Union by July 2019. The measures in the plan are aimed at strengthening the regulatory framework on banking supervision, improving the macroprudential framework on credit borrowers, strengthening supervision of the non-banking financial sector (pension funds and insurers) and improving the insolvency framework, the government said at the time. In July, the euro area finance ministers said they would support Bulgaria's intention to join the ERM II after a positive assessment of the ECB but urged the country to adhere to its promises for reforms under the Cooperation and Verification Mechanism (CVM).