MP Tsoncho Ganev of the Revival party spoke to reporters in the parliament's corridors and said that the fight against oligarchy in Bulgaria is actually being waged against the country's poorest citizens. According to him, nothing good comes out of this policy.
Earlier, pensions and maternity benefits for people whom Ganev called "oligarch pensioners" had already been frozen. Today, he said, the majority passed two new laws heading in the same direction — this time targeting people trapped in payday loans they cannot escape.
One and a half million Bulgarians in the poorest country in the European Union resort to payday loans, the MP noted, with around 25% of the population taking out such loans every year. This, he said, is extremely worrying.
Under the newly passed consumer credit bill, the interest rate cap is being removed, Ganev explained. In addition, provisions under which interest on payday loans in cases of early repayment demands and penalty interest is charged only on the principal are also being scrapped. Under the new law, he said, debtors will now pay interest on the entire loan amount, no matter how much they have already repaid.
Ganev also drew attention to payday lenders' access to the civil registry system, warning that this would open the door to harassment by phone and other means, which he described as "concerning, to put it mildly." The majority, the MP added, refused even to consider the alternative bill submitted by Revival.
The MP also commented on amendments to the Insurance Code adopted at first reading. "It is now guaranteed that when companies linked to insurance firms need to top up the Guarantee Fund, this cost will be built into the new Motor Third Party Liability insurance policies," Ganev explained.
In an off-the-record conversation, the chairman of the Economic Affairs Committee confirmed to him that these changes will inevitably drive up the price of car insurance policies, the MP added.