/ world today news/ You probably remember one of Bismarck’s most quoted maxims: “The most lies are made before war, before elections and after hunting”. Come to think of it, if we exclude hunting, we are currently witnessing both of the other situations.
In September 2013, a group of specialists and members of the public gave a press conference where we signaled the bad banking practices and their consequences. Then we outlined 7 legislative measures that must be implemented IN A PACKAGE to regulate the market and restore confidence in the banking system. Few media responded to our call, but the 7 measures reached a wide range of people through other communication channels and the Internet.
I will recall them because they are extremely relevant even today: First – market interest rate, not determined unilaterally by the bank, second – elimination of early repayment fee, third – elimination of “and banks” from para. 2 of Art. 417 of the Code of Civil Procedure so that banks cannot condemn you without knowing and without having the right to defend yourself, as well as other changes in the Civil Code to stop the arbitrariness of the PSI. Fourthly – creation of an independent body outside the BNB to monitor unfair practices of the banks. To date, the BNB only monitors the stability of the banking system, without being interested in what measures this stability is achieved, the KZP does not really show any interest, but refers the disputes to the court. Fifth: introduction of a financial ombudsman – a specialized body to resolve disputes between clients and financial institutions within 2-3 months, free of charge for the client. This will avoid the hundreds of thousands of disputes between banks and customers. But the most important thing is that people will not be afraid of credit. Sixth: adoption of the Law on Bankruptcy of Individuals, which will give hope and the opportunity for a new beginning to all taxpayers, as well as discipline the banks themselves in granting loans. And in 7th place – small and medium-sized enterprises to be recognized as CONSUMERS and to receive protection from the Consumer Protection Act. The latter is extremely important if we want to have a normal economy and not deal solely with monopolists.
I will immediately give an example – the clause on the unilateral change of the interest rate or the fee by the bank is unfair if you are an individual. But if you are a small company, then this is completely normal and legal according to our legislation. What to say in this case, people who are engaged in small business, such as tailors, hairdressers, bakers, distributors? They do not use the same lending services as mobile operators, CEZ… Moreover, their contracts are exactly the same terms and conditions as those of individuals. Not so for large corporate customers. They have totally different conditions and, accordingly, contracts.
In 2014, after much writing, the BSP and DPS government set about introducing the series of 7 points. But … they got to the first 2 points because they are laid down in the Euro directive that we have to comply with. Naturally, the effect had no economic result, since the 7 measures only work in a package.
By the way, after several meetings in the economic committee and the budget committee of the parliament, these seven measures with the reasons and the predictable results of their introduction were officially submitted to the secretariat of the National Assembly, as well as to the offices of all political forces at the time. They were also submitted to the president, as well as to the ombudsman.
Result – none from official authority. But the effect of not adopting the measures was seen and felt by everyone – it is called KTB.
Municipal elections are currently on the agenda and every political party needs money. And funds remained only in pension companies and banks. Naturally, you all already learned about the notorious 16 billion BGN loan with which they are trying to bury us, mainly from GERB. The money is needed now, at the moment, and if it can be unaccounted for.
According to the famous saying, you can’t take the truncheons barefoot, but you can take a lot of things from the banks. And the great division began!
Notice what suddenly happens:
ABV submit a draft for the bankruptcy of natural persons? Who made it and what specialists were involved in making it… it’s not entirely clear. This is a pale semblance of point 6 of our demands.
The Patriotic Front is introducing a BILL (from one sentence to change the Code of Civil Procedure), which would solve our problems with “Banks, PSI, Electricity Distribution Companies and all kinds of monopolies”. In addition to being frivolous, it is also impossible, but in any case, this answers, albeit illiterately, one of our requests under number 3 in the 7 measures.
GERB, on the other hand, would introduce the Financial Ombudsman – point 5 of the requests submitted to them the previous year. I think that here they have even begun to compete with the reformers, because they too have claims of “authorship” over this proposal.
It is a pity that their coalition does not have 2 more parties to accept points 4 and 7, so that something meaningful can be obtained.
I will immediately give you an example of why the problems will not be solved without points 4 and 7: BNB monitors the stability and results of our banking system, but they monitored KTB, but it went bankrupt.
Who keeps track of how these results are achieved? I argue that they have been achieved through a number of wrongdoings, such as the unilateral changing of interest rates and fees by banks, for which in the civilized world banks have been fined billions.
Doesn’t this destroy long-term confidence in our banking system? Is this not the reason why banks like the German Unionbank left the market and were sold to PIB, and the French Credit Agricole withdrew and was bought by KTB?
Unfortunately, this is how politics is done in Bulgaria. How exactly? You go to the office to get a copy of a proposal from a non-governmental organization on the subject. In order to have it for everyone, you divide it into parts, make slight corrections (no matter that they seriously discredit the idea – note) and start proclaiming how you will protect all citizens from bad banks and monopolies.
All this pre-election, illiterate and, of course, with a single goal – to get someone left using the most ancient logic: “Pay or vote for the changes”. And those some changes… again partial and again – without effect. The important thing is that the money flows in and that people run the right ballot.
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Vasil Kendov, chairman of the Association of users of banking and financial services.
#preelection #racket #banks #consumers
