Подготовка и въвеждане на валутния борд в България
Рreparation and Introduction of the Currency Board in Bulgaria

Summary/Abstract: The purpose of this report is to clarify the reasons that led to the preparation and introduction of the currency board in Bulgaria in the autumn of 1996–1997. At the beginning of the transition from state socialism to parliamentary democracy and a market economy, the banking system was restructured. It was transformed from a single-tier to a two-tier system. In addition to state-owned banks, private banking institutions were also established. The issues related to the liberalisation of prices, the change in the functioning of financial institutions in 1990–1992, the effectiveness of the new banks in the context of the overall social change in the country and its socioeconomic dimensions will be examined. Of particular importance is the role of the Bulgarian National Bank and the Bulgarian Foreign Trade Bank, as well as the admission of Bulgaria as a member of the International Monetary Fund and the World Bank in September 1990. The effect of financing state-owned enterprises on banks’ liquidity will be analysed. The main concepts related to the topic will be defined. The problem of the accumulation of external and internal state debt, the announcement of a moratorium on the repayment of external debt by Prime Minister Andrey Lukanov, and the financial crisis during the rule of Zhan Videnov will be traced. The economic and social consequences of the financial turmoil in the country in the 1990s and the introduction of the currency board will be presented.

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