The Bulgarian National Bank announced that, within its powers, it is reviewing and analyzing the potential consequences for the banking system in the country of the implementation of the sanctions imposed by the US on the Russian energy companies “Rosneft“, “Lukoil“, their subsidiaries, as well as companies in which these companies directly or indirectly own 50 percent or more of the capital.
There is no direct credit risk that would affect the stability of the banking system in the country, the BNB reported. From the point of view of the economic consequences, the legal entities potentially affected by the imposed sanctions in Bulgaria are among the significant economic entities whose financial flows are serviced by the banking sector, Nova TV pointed out.
According to the measures announced by the US Office of Foreign Assets Control (OFAC), a transitional (wind-down) period is provided for certain activities and existing contractual relationships, regulated in an issued general license, which allows the settlement of current liabilities within a certain period.
In this regard, in strict compliance with the applicable European and national legal framework, including the provisions related to international sanctions and measures against money laundering, as well as internal rules and procedures, credit institutions will independently make decisions regarding their contractual relationships with potentially affected clients. This will be done when assessing the risk of establishing or maintaining business relationships, in accordance with the requirements of the Anti-Money Laundering Measures Act (AMLA), and taking into account the possibility of applying secondary sanctions to individuals or institutions that violate the OFAC regime.
The Bulgarian National Bank is in close coordination with the Ministry of Finance and other competent national authorities in relation to assessing the impact of the sanctions and taking appropriate measures, when necessary.
The BNB reports that it continues to monitor the development of the situation, maintaining active communication with national and international institutions, and will inform the public in the event of circumstances requiring additional actions or clarifications.