14 August 2007
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A Cash Services Company AD (CSC AD) was established by a decision of the Sofia City Court of 10 July 2007 with the following shareholders: Bulgarian National Bank, DSK Bank, United Bulgarian Bank and Unicredit Bulbank. The company’s capital is BGN 10 mill. And each of the shareholders owns 25 percent of the capital. The company is managed by a Board of Directors with the following membership:
•Tsvetan Manchev – Chairman, Deputy Governor of the BNB;
•Emilia Palibachiiska – Deputy Chairman, Executive Director of Bulbank;
•Rozalina Nazeva – Managing Director;
•Luben Ivanov – Managing Director;
•Radka Toncheva – member, Executive Director of UBB;
•Miroslav Vichev – member, Executive Director of DSK Bank;
•Irina Martzeva -member, General Secretary of the Bulgarian Bankers’ Association;
The business plan of CSC AD envisages the Company to start effectively providing cash services from the beginning of 2008.The purposeof establishing the Company is to provide market-based cash services to commercial banks, individuals and companies in this country, while facilitating the implementation of one of the priority objectives of the BNB of supporting the security and quality of cash circulation in Bulgaria. The CSS is to operate in Sofia, Varna, Plovdiv and Pleven, and also in Bourgas.
The BNB participates in the Cash Services Company with the currently existing network of regional cash service centres (Varna, Pleven, and Plovdiv), technologically and with the experience of its staff involved in such activities, without transferring the ownership of the cash centre buildings. Due to the technologically required time for the reconstruction of the existing facilities and rearrangement of operations for the work of the CSC AD, the BNB Governing Council decided that, as of 1 September 2007, the BNB should discontinue its cash operations with non-bank institutions and individuals in its regional cash centres in Varna, Pleven, and Plovdiv.
In relation to transferring part of the regional cash centres’ activities to the CSC AD, the BNB Governing Council made also a decision to make amendments to Ordinance No. 18 on the control of the quality of banknotes and coin in the cash circulation and Ordinance No. 24 on the replacement of old banknotes and coins with new ones in relation to the redenomination of the Lev.
In accordance with the amendments to the BNB Law of 2005 and the above BNB Ordinances, citizens and companies can turn to any commercial bank for the exchange of banknotes and coins for which the period for exchange has not expired, for the exchange of damaged banknotes and coins and for any other services provided until 1 September 2007 by the BNB regional cash centres in Varna, Pleven, and Plovdiv.