/ world today news/ The demand that the caretaker government can take out loans seems rather doubtful, especially in the situation in which we find ourselves with a lack of information.
You can’t just take out a loan because Boyko Borisov or the president said so. As far as I’m aware, neither of them are financiers, and when they say something, they should have a reason why. Moreover, trust in both of them – the first as a politician and the second as an institution – is very low. It is not enough for them to order – we have to withdraw credit. We want to know why this should happen. In my opinion, the financial situation in Bulgaria is no different from what it was one or three years ago.
To date, no one, except the government, can say whether Bulgaria’s financial situation is bad. Oresharski’s cabinet is leaving, so it cannot be expected to find that the account is in the red. Accurate data can be obtained by the BNB – they have the state’s accounts. But they are also silent from there, especially after the scandals surrounding the banking system.
At this point, we as analysts also cannot say whether a new loan should or should not be taken. The society is cut off from official data, and even if we have such, they cannot be trusted, since there is no guarantee in the precision of the institutions that have to give it. The example of a bank, where for days the statements turned 180 degrees, is elementary.
As far as the polls are to be believed, GERB is expected to win the next elections and take part in the government. If they come to power with a dead budget, because it really is, at least in health care, they will need fresh money to quell social discontent. Surely the new rulers would like to have a more trouble-free existence.
At this point, we have many unanswered questions. The first of these is: what is the official data and is it exactly as it is being exported? The second: what is behind this data? If we recall the case when the BSP government came to power – the first thing they did was to pay off the debts accumulated by GERB. At this time, there are no indications of accrued liabilities from Oresharski’s office. But if there are, they must be paid, otherwise the state is condemned to constant protests, and in such a situation it will be very difficult to govern.
Regarding the opening of the credit files at KTB, I admit that I am divided. If they open, it should be done for everyone. Otherwise, selectivity results, and it creates conditions for corruption and manipulation. It is not reasonable to open the files of some people, if such a decision is made – let it apply to all.
Already a year ago, together with my colleagues, we gave a press conference where we explained what the banking problems are and what they will lead to. They didn’t pay much attention to us then, but today they came up with exactly what we said would happen. Then I pointed out those problems in KTB that the Central Bank is currently identifying. There is no way that a member of the public knows what is happening in KTB and what are the practices there, and the BNB does not know. They have all the information, but the decisions are no longer economic, but political, and the latter cannot be predicted as well as the economic.
A mandatory condition, if we want Bulgaria to take any step forward – big, small or miniature, is that Ivan Iskrov and the entire Board of Directors of the BNB leave as soon as possible. It is even more imperative that the BNB opens up to communication with the public. Our banking system currently behaves as an isolated system and this behavior is dictated by the BNB. However, the banking system is part of our society.
The financial system is the connecting link in all other systems and trust is a key factor – we have seen it in practice. If I have confidence in the banks and the institutions that work in the West from us are available – financial ombudsmen, controlling bodies outside the central banks, even if I receive an SMS with a request to withdraw my money from a bank, I simply will not pay any attention to it. At the moment, if you receive such an SMS, the most reasonable thing is to go to the bank, because you don’t know if someone is not making political, not economic decisions. Because today they tell you that they will return the money to KTB, and tomorrow – exactly the opposite.
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Vasil Kendov, chairman of the Association of users of banking and financial services.
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