The government approved an action plan that included measures following the plans of the Republic of Bulgaria to join ERM II and the Banking Union by July 2019, according to the press service of the government.
The document was prepared in response to the letter of 29 June 2018 from the Minister of Finance and the Governor of the Bulgarian National Bank concerning the participation of the Republic of Bulgaria in the single supervisory mechanism through close cooperation with the European Central Bank within the meaning of Regulation (EU) No 1024/2013 and the country's intentions to apply in currency II, which also received political support from the Eurogroup.
The action plan includes measures to be implemented by the end of June 2019, taking into account commitments made with the letter. The measures consist of: strengthening the supervisory framework in the banking sector through close cooperation with the ECB and making the necessary preparations in accordance with existing procedures by making a number of changes to national legislation by the end of 2018. they must be approved by the National Assembly; Improvement of the macro-financial framework through the introduction of macro-prudential instruments in the Credit Institutions Act by the end of 2018, allowing for a system level of requirements for borrowers; strengthening the supervision of the non-banking financial sector (pension funds and insurance companies); improvement of the bankruptcy framework after a review of the legislation and the drafting of the relevant legislative changes; strengthening the framework for combating money laundering; modernizing the framework for the management of state-owned enterprises by reviewing and evaluating the legislative, regulatory and functional framework and formulating recommendations to overcome the inconsistencies between Bulgarian legislation and best international practices and, consequently, to draft legislative texts in accordance with the guidelines of the OECD; the ratification by the National Assembly of an agreement concerning the transfer and mutual use of contributions to the Single Fund for Restructuring.
The implementation of the above measures will ensure compliance with pre-commitments in policy areas of major importance for the smooth transition to ERM II and the Banking Union by July 2019, and as a result, the euro will be implemented after all convergence criteria, in accordance with Article 140 of the Treaty on the Functioning of the European Union.