Regulatory Alerts2025-01-09
Ordinance No 6 of the Bulgarian National Bank on Provision of Emergency Liquidity Assistance
The Bulgarian National Bank issues this ordinance to establish the terms, guarantees, and procedures for providing emergency liquidity assistance to solvent credit institutions experiencing liquidity stress. The central bank may grant such assistance in euro for up to six months, renewable under strict conditions, provided the bank offers acceptable collateral and pays an interest rate at least 100 basis points above the Eurosystem marginal lending facility rate. The regulation mandates a rigorous application process, continuous solvency monitoring, and detailed reporting requirements to ensure compliance with EU treaties and ECB guidelines while preventing monetary financing.
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