Parliament updates the State Financial Inspection Act due to the euro

Amendments to the Law on State Financial Inspection due to the adoption of the euro

The National Assembly has adopted, at two readings, amendments to the Law on State Financial Inspection (LSFI). The amendments were submitted by the Council of Ministers and aim to adapt the legislation to the upcoming adoption of the euro as the national currency.

The changes concern the recovery of damages caused in foreign currency, as well as the recalculation of fines and pecuniary sanctions.

New rules for pecuniary liability

Article 25 of the law, which regulates pecuniary liability, is being amended. Damages caused in foreign currency will be recovered in accordance with the specific exchange rates of the Bulgarian National Bank. According to the sponsors, the bill will not burden the state budget.

Sanctions are now in euros

The Director of the Public Financial Inspection Agency (PFIA) will now impose fines in euros. Specific examples of the changes include:

• Old fines of BGN 500 to 3,000 are replaced by their equivalent of EUR 255.65 to 1,533.88.
• The changes cover violations of budgetary, financial and economic, and accounting activities in the entities under inspection.