BANKRUPTCY REFORM AND CREDIT CARDS

Bulgaria’s difficult transition from plan to market was marked by persistent macroeconomic and financial instability leading to a major economic collapse in 1996-1997. In 1997 a currency board arrangement (CBA) was established as a “policy of last resort” with the aim to impose fiscal and financial discipline. The change in the monetary regime was accompanied by a comprehensive package of policy reforms affecting not only the macroeconomic but also the institutional environment and the functioning of the financial system. In particular, the norms of prudential bank lending and bank supervision were tightened considerably; at the same time ...