Economic and financial section > Report of the Commissioner of the League of Nations in Bulgaria > 24th report

- 7 —
III. National Bank of Bulgaria.
(a) Extract from Statements.
(Millions of leva)
Date
Gold
Net
stock
of
foreign
exchange
Bill
holdings
Advances
To State
(Treasury
bonds)
Others
State
debt
Invest¬
ments
December 31st, 1930
December 31st, 1931
January 35!, 1932 .
February 29th, 1932
March 31st, 1932 .
April 30th, 1932 . .
May 31st, 1932. . .
June 30th, 1932 . .
July 31st, 1932 . .
D455
i,5n
1,512
1.512
1.513
1.513
1.514
1.515
1.516
793
257
164
150
207
154
195
223
164
362
342
255
259
281
298
283
273
264
157
279
279
279
279
279
279
282
282
270
237
166
170
167
170
166
164
154
3,162
2,995
2,965
2,965
2,965
2,965
2,965
2,965
2,965
316
317
317
312
309
308
305
305
304
Date
Notes
in
circulation
Other
sight
liabilities
Percentage
of
Discount
rate
percentage
December 31st, 1930
December 31st, 1931
January 33!, 1932 .
February 29th, 1932
March 31st, 1932
April 30th, 1932.
May 31st, 1932 .
June 30th, 1932.
July 31st, 1932 .
3,296
2,919
2,730
2,672
2,797
2,827
2,675
2,628
2,638
D547
I>397
1,514
i,596
D552
D4I9
1,651
1,650
1,696
36.48
37-69
37.28
35-25
35-73
36.80
35 44
36.15
35-o8
10
9Y2
91/2
9y2
91/2
91/2
8
8
8
From April 30th to July 31st, 1932, there were only slight variations in the Bank’s position
apart from the shrinkage of the circulation (see below, “ Money Market ”). The stock of gold is
increasing at the same slow rate, Net reserves of foreign currency rose from 154 to 164 millions,
but the latter figure includes (see below, “ Clearing Arrangements with jOther Countries ”) no
millions of blocked credit balances not available for arbitrage. Bill holdings, advances and invest¬
ments remain unchanged. The cover is still above the legal minimum.
Advances on security of goods still amount to 76 millions, as compared with 85 on December
31st, 1931. Under its Statutes, the Bank should have withdrawn from this class of business,
but the two emergency laws for the protection of debtors mentioned in my preceding report make
liquidation difficult.
These laws likewise prevent the liquidation of advances or investments on mortgage security
(58 millions, as compared with 74 on December 31st, 1931) which are also prohibited by the new
Statutes.
(b) Partial Suspension of Transfers and Control of Operations in Foreign Exchange.
The National Bank is adhering strictly to its policy of quotas for the supply of foreign currency
as defined in principle in my previous report. The following additions have been made to the
regulations already reported:
All imports from Austria must be settled through the clearing house;
Prior permission must be obtained for contracting obligations abroad in the form of
bills;
The right to import and export against payment in leva is subject to regulation;
Stricter supervision of exports of currency by travellers;
Prohibition of exports of cereals payable in foreign currencies which are not freely
negotiable;
Further, a Law of June 13th, 1932, amending Article 2 of the Law on Foreign Exchange
Dealings, provides that if the non-transferable portion of the amount of a bill of exchange or
promissory note in foreign currency is deposited in leva with a notary—the necessary foreign
exchange not having been granted by the National Bank—no protest may be drawn up against
the debtor. F 6
Negotiable instruments domiciled abroad and protested there, bearing the signature of
Bulgarian debtors who have not received sufficient foreign currency from the National Bank have