Discussion of Legislative Changes to Limit Cash Payments above 10 000 BGN

Second Extended session of the Advisory Board of the Bulgarian Global Compact Network

Today, the second meeting of the Extended Advisory Board of the Bulgarian Global Compact Network and the business organizations in Bulgaria was held at the UN House. The agenda of the meeting was to discuss experts' proposals on introducing legislative changes to restrain corruption which is the main focus of the Bulgarian Global Compact Network for 2006. At the meeting were present: Mr. Vassil Mirtchev, CEO of VM Finance Group, Mr. Ivan Sokolov, CEO of Orgachim, Mr. Stamen Tassev, Executive Director of BBLF, Mr. Neil Buhne, UNDP Resident Representative, Mr. Iosif Avramov, President of the Center for Privatization and Foreign Investments in Bulgaria, Mr. Georgi Chernev, Chairman of the Sofia Chamber of Commerce and Industry, Ms. Penka Tsvetkova, Corporate Services Manager of BCAF, Ms. Diana Kovacheva and Ms Katia Valcheva, Transparency International, Ms. Maya Nyagolova, UNDP Bulgaria, Ms. Galia Petrova, Confederation of Employers and Industrialists in Bulgaria, Mr. Tsvetan Simeonov, Vice-President and CEO of Bulgarian Chamber of Commerce and Industry and Ms. Valia Chilova, from Marketor.

At the first extended meeting held on July 26, 2006, the Global Compact Advisory Board and the representatives of the business organizations in Bulgaria unanimously decided to initiate legislative changes that limit cash payments above 10 000 BGN. As result of the discussions Mr. Iosif Avramov presented his report "Expert Analysis for Legislative Changes Aiming at Limiting Cash Payments above 10 000 BGN". According to him a provision has to be included, envisaging that all payments above 10 000 BGN, including on real estate bargains have to be made with bank remittance. Transparency International introduced some European Union regulations as well as concrete laws and practices from EU member countries. France was described as the best example for legislation restricting cash payments. The French Code on money transfers provides different regulations regimes for the legal entities and the natural persons and envisages a limitation on cash payments above 3 000 EUR for the natural persons and 1 100 EUR for the legal entities. From the EU acceding countries, Romania has been pointed out as a pioneer in regulating the cash payments for legal entities. The Romanian law provides a restriction for cash payments above 6 000 Romanian Lei (around 1 700 EUR). A decision has been adopted to scrutinize the Romanian law and practice on this matter.

On the 5th of December, Diana Kovacheva from Transparency International will present the proposals and they will be put into discussion at the Civil Council within the Parliamentary commission for the fight against corruption. At early January 2007 an open session of the Parliamentary commission will convene, jointly with the Global Compact Advisory Board and business associations, to present and to discuss the proposals for legislative changes to restrain corruption by limiting and regulating the size of cash payments.