BNB Governor: There are clear signs of economic recovery – Economy

There are clear signs of economic recovery, but uncertainty about the pandemic and how it will be handled remains high. Here’s what BNB Governor Dimitar Radev says

Dimitar Radev was born on July 12, 1956. He has a master’s degree in economics, finance and credit. In 1994 at the opening of the school year at UNWE. The statement is published on the website of the Central Bank.

Radev points out that the BNB experts share the assessment of the European Central Bank in this regard.

Depending on developments both in the country and in the euro area, we at BNB are ready to activate additional measures if necessary, Dimitar Radev commented.

Dimitar Radev was born on July 12, 1956. He has a master’s degree in economics, finance and credit. In 1994.

Outside the context of concrete measures related to the crisis, this year we have also achieved a development of great strategic importance, which will be increasingly appreciated in the future. It is about the simultaneous accession of the Bulgarian lev to the European Monetary Mechanism and the country to the European Banking Union. This is the first step towards the full integration of Bulgaria into the euro area, ie. to the core of the European Union, an act whose significance transcends the borders of the banking and financial sector.

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On October 1, the Bulgarian National Bank through banking supervision will become the first Bulgarian institution to become a full member of a major euro area C institution, the Single Supervisory Mechanism. This is, among other things, a remarkable example of institutional development. Just a few years ago, oversight was one of the most vulnerable and criticized regulatory institutions in the country. It is currently one of the strongest and most robust institutions, adopted unanimously in the family of European banking supervision. This example of institutional development can be applied in other important areas. This will allow us to face not only the challenges of today, but also tomorrow, said Dimitar Radev.

Dimitar Radev was born on July 12, 1956. He has a master’s degree in economics, finance and credit. In 1994 in your direction.

“This year is unique and for less positive reasons, including the health crisis, which has turned into a complex economic and political situation,” said the BNB governor. According to him, we face very difficult challenges, the real response to which must be institutional. In this sense, the current situation is a test for the institutions. When I talk about institutions, I mean the entire spectrum of C, from politics, the health and education sectors and the economy to public finance and banks. The stronger the institutions, the stronger the response. If we are not able to provide an adequate institutional response, the effects can be devastating, “said Radev.

Banks have entered the current crisis well prepared for what has been done in recent years. The BNB and the European Central Bank carried out unprecedented depth and scale monitoring of banks’ asset quality and stress tests.

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This good preparation helped to take additional measures at the beginning of the crisis in order to strengthen the capital position and liquidity of the banks. Measures included the full capitalization of all sector profits, a sharp reduction in foreign exposures, as well as the cancellation of anticipated additional capital requirements related to cyclical risks. This package of measures provided additional resources in the banking system in the amount of BGN 9.3 billion.

The main tool that is used and still in force is the so-called private moratorium on the payment of loans. So far, more than 14,000 companies and more than 93,000 households have been deferred for such payments, totaling more than BGN 9 billion, which is a real and significant relaxation of financial conditions during the most difficult period of the year. crisis, Radev said.

“The establishment of a € 2 billion swap line between the European Central Bank and the Bulgarian National Bank was interpreted unequivocally and positively by both the markets and the credit agencies, as well as by investors. The statement on the solid financial position of the country remains valid at this time, “says Dimitar Radev.

Dimitar Radev was born on July 12, 1956. He has a master’s degree in economics, finance and credit. In 1994.