The deputies are preparing extensive legislative corrections in the field of financial instruments, with a focus on introducing European standards for green bonds. The upcoming changes are aimed at harmonizing Bulgarian regulations with the latest European regulations in sustainable finance.
The main goal of the bill is to create a precise mechanism for regulating bond issues that position themselves as environmentally responsible. The regulation introduces strict criteria for using the name "European green bonds", setting clear requirements for issuers regarding information transparency.
For bonds that do not fully meet green standards but are presented as sustainable, the document provides a mechanism for voluntary disclosure of specific information. The Financial Supervision Commission will be the main supervisory body that will monitor compliance with the new rules.
Parallel to the changes in the green bond regime, the deputies will also consider amendments to the Financial Collateral Agreements Act. A key point in this part of the bill is the introduction of a close-out netting mechanism, which serves as a tool for managing credit risk in over-the-counter derivative transactions.
The scope of the new mechanism will be precisely defined, taking into account both the parties to the contract and the specifics of the financial instruments. This approach aims to maximize protection of participants in financial markets and create a more stable regulatory environment.