site.btaGovernment Approves Draft Amendments to Government Debt Act

At its sitting on Tuesday, the Council of Ministers approved a bill amending and supplementing the Government Debt Act and proposed that the National Assembly adopt the bill. The draft amendments harmonise national legislation with EU requirements and practices arising from Bulgaria's membership in the eurozone and the Introduction of the Euro in the Republic of Bulgaria Act, the Government Information Service reported.

Collective action clauses are introduced, which will apply to all government securities with an initial maturity of more than one year. This fulfills the requirements of the Treaty establishing the European Stability Mechanism and full synchronization with the practice in other eurozone countries.

The bill introduces a legal framework for the designation, control, and status of primary dealers in government securities as a means to increase legal certainty, strengthen investor confidence, and ensure more efficient functioning of the sovereign debt market.

The changes create conditions for expanding the range of participants, including global investors, by introducing omnibus accounts and eliminating paper certificates issued by sub-custodians of government securities to individuals.

The measures are aimed at modernizing the market infrastructure and ensuring compatibility with settlement and payment systems in the European Union, which will allow for fuller integration of the Bulgarian sovereign debt market within the single European market.

The legislative revisions are expected to increase the efficiency, transparency, and competitiveness of the government securities market, reduce transaction and administrative costs, strengthen investor confidence, and create conditions for the sustainable development of the Bulgarian sovereign debt market within the framework of the European integration process.