Georgi Kadiev offers special text for unsecured loans in NC

To return to the Criminal Code (CC) Special Appeal to grant unsecured loans canceled in 2001. This bill proposes to independent MP Georgi Kadiev.

It only changes Art. 220 of the Criminal Code, proposing the creation of a new par. 3 and par. 4. After two paragraphs of unfavorable transaction whose main composition is punishable by 1 to 6 years in prison and deprivation of rights Kadiev proposes to write that "the same penalty shall be imposed on an official who has authorized the granting of credit without sufficient collateral and / or proven source for servicing and repayment, as a result of which he remained outstanding. "

His proposal was slightly modified version of the existing text to 2001, para. 3 Art. 220. It read: "The punishment under para. 2 shall be punished official who has authorized the granting of credit without proper collateral and the loan remained outstanding." Ie then unsecured loans envisaged punishment for particularly serious cases of unprofitable transaction - from 1 to 10 years in prison. Another difference with the current 14 years ago text that Kadiev available in NC to save that same responsibility and borrower.

Moreover, according to him should create a new paragraph. 4. And it provides that allowed the loan and the recipient was not penalized on two hypotheses. The first is if the loan is granted under justifiable economic risk bank or non-payment is due to circumstances which the parties were unable to provide in its resolution. Second, if the loan and any interest thereon are fully repaid to the opening of the first hearing.

In fact, it is noteworthy that the proposals Kadiev remarkably similar to those made by Svetoslav Louchnikov in 2001 as an alternative to the idea of repealing the third paragraph of Art. 220. With the voices of NMSS and MRF part of BSP MPs from the 39th National Assembly, however, has decided to eliminate the special text. During the discussion in the plenary (see transcript) have touted a series of reasons. From that text it does stiffness bankers and they are afraid to lend to that actually art. 220 par. 3 is a redundant provision, as unsecured loans can be prosecuted basic composition of unprofitable transaction. Then MPs comment on the case of "MINERALBANK" and today Georgi Kadiev motivates its proposal as follows: "In order to ensure banking stability in the long-term assignment of personal responsibility for lending without alternative and obligatory measures to prevent new cases like this with CCB. "

The MP said that the announcement of the bankruptcy of the fourth largest bank in the country - CCB shows that there are no mechanisms in the country to be held responsible persons threaten the stability of the banking system lending without adequate collateral. "In an effort to implement its plans for sales, which often exceed the capacity of the economy and in practice are completely uncontrolled, banks apply extremely aggressive market policies leading to the distribution of non-target poorly secured loans without reliable sources of servicing and repayment . Such practices may be justified from a business perspective, but jeopardize the banking system led to bank failures, heavier than that of CCB, "the motives of the bill. They also said: "The difficult recovery of public funds spent for payment of deposits of the Fund for Guaranteeing Bank Deposits clearly shows to what size can reach the damage to the state by the lack of control over the granting of subprime loans or loans to related persons owners of banks. "

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Georgi Kadiev offers special text for unsecured loans in NC

Attorney at law Iuila Danova

#3, Dobrotica Str., Varna, Bulgaria

Mob: +359 895 64 59 40

WWW: advokatvarna.com

Email: iulia.danova@abv.bg