Central Bank Independence in Transition Economies

W. Maliszewski 

CASE Foundation 

36

implementation (Art. 5). The Governor of the Bank attends the Government meetings 

with a consultative vote (Art. 9). 

1C. Limitations on Lending 

The Bank is prohibited from making loans to the Government or using money 

emission to finance the budget deficit (Art. 6, 17). However, the Bank may be entitled 

to give a short-term credit to the Government for a period of six month and to purchase 

Government bonds. 

1D. Banking Supervision and Exchange Rate Policy 

The Bank is responsible for commercial banking supervision. 

 

2. Bulgaria

2

 

The Bulgarian National Bank was originally founded in 1897 and re-established 

in June 1991 when the new status was granted. The law was amended in April 1996 

when the procedure for Bank's management dismissal was modified.