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The Parliament terminated Bulgaria’s membership in two international banks

The Parliament voted in the first reading to terminate Bulgaria’s membership in two international banks – the International Investment Bank (IIB) and the International Bank for Economic Cooperation (IBIC).

The bill was introduced by the Council of Ministers and was supported by 138 votes in favor.

The government proposes to the MPs to adopt a Law on denunciation (refusal to comply with a contract) of the agreement on the International Investment Bank (IIB) and the International Bank for Economic Cooperation (IBIC). The reason for the rush is that soon our country will remain the only partner from the EU in one bank, and in the other we will only be with Hungary, because all other member countries of the European Union are completing the withdrawal procedure.

Hungary does not subscribe to the common position.

The International Investment Bank is an international development finance institution headquartered in Budapest. The member countries of the MIB are Bulgaria, Vietnam, Cuba, Mongolia, Hungary, Romania, Russia, Slovakia and the Czech Republic. The authorized capital of the MIB is 2 billion euros, and its paid-in part is currently 427.1 million euros, writes the importer. The reasons also state that Russia is the largest shareholder in MIB with a 47.21 percent stake in the bank’s paid-up capital. Currently, Bulgaria’s participation in the contributed capital is EUR 42.2 million or 9.88 percent of it.

The International Bank for Economic Cooperation is an international financial institution headquartered in Moscow. Its members are Bulgaria, the Czech Republic, Poland, Romania, Slovakia, Mongolia and Vietnam and Russia. The authorized capital of MBIS is EUR 400 million, and the contributed part is EUR 200 million. Russia is the largest shareholder in MBIS with a 51.59 percent share in the bank’s paid-up capital. Currently, Bulgaria’s participation in the contributed capital is EUR 15.1 million or 7.56 percent.

After the European Union took coordinated action because of the war in Ukraine, already on March 2 last year, a decision was taken by the EC to take action in connection with the common position of the EU that its members should terminate their membership in the two banks.

“Vazrazhdane” and BSP doubted that this was pressure on Eastern European countries on orders from Brussels, and the departure of the banks would be a threat to the national and financial interests of Bulgaria.

I will once again pass a bill in which once again it appears that an institutional servitude dictated by Brussels bureaucrats is taking place. We will leave these banks only because someone in Brussels has decided that it will be a righteous Euro-Atlantic, pointed out Tsoncho Ganev from “Vazrazhdane”.

He commented that it is unacceptable for the Ministry of Finance to come out without an economic analysis, without an analysis of the damage, of the consequences, without knowing how much it will cost us, but I will accept the bill only because Brussels has decided so.

Dimo Drenchev from “Vazrazhdane” explained that despite the fact that the share in our banks is small, our economy benefits from them, calculating that our profit is about BGN 187 million and it is not in our interest to leave them.

The leader of “Vazrazhdane” Kostadin Kostadinov also spoke against it, saying that the Hungarians will take our capital for nothing, which we will literally give them as a gift by leaving the two banks.

On behalf of the BSP, Rumen Gechev said that they will not support the proposal. According to him, we will suffer further losses and these sanctions would bring more damage to the EU members than to Russia.

The Chairman of the Budget Committee, Petar Chobanov, immediately proposed that the bill be passed on to the second reading, but the BSP and Vazrazhdane expressed their displeasure, and therefore Chobanov’s proposal was dropped. The deadline for proposals between the two readings has been reduced to 3 days.

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