The Central Bank of Bulgaria continued to tighten its belt. The Governing Council decided next year not to increase the salaries of the staff of the institution. Or so says the budget of the National Bank for 2014, which was lodged last week in the National Assembly. It shows that the cost for the personnel will be 23.078 million levs, and as compared to 2013 its growth is 3.4%. Noteworthy, however, is the following: There are no programmed wage indexations for the workforce of the Bulgarian National Bank (BNB). The increase of the funds is a result of legislative changes and their impact on labour costs. Such changes are mainly the maximum insurable earnings, increasing the minimum wage legal, as well as the requirement to annually increase the compensation for length of service and experience, payment by the employer for the first 3 days of sick leave, etc. Of course, employees who work diligently can expect that their effort will be adequately assessed.
The expected revenue of BNB for the next year is around 180.5 million levs. The main source will be the proceeds from interest on deposits and government securities invested in foreign exchange reserves. The estimated costs will be about 85.81 million levs. Compared to 2013 they are by 6.34 million levs more, with the increase mainly due to larger amounts related to the money circulation in the country. On it the C-Bank plans to spend 15.2 million levs, and the amount is by 43% more than this year’s.
The central bank will order the printing of 60 million levs worth of new banknotes, the majority of which are to replace the unfit banknotes that are worn out because of their long use. Each denomination has a different lifespan, and the shortest one is that of the two-lev banknotes: 11 months. The maintenance of the necessary amounts of banknotes with a face value of two levs in circulation bears substantial costs to BNB, so the bank intends to soon follow the experience of the European Central Bank and replace the paper banknotes with metal coins whose life is a hundred times longer. Large denominations are also subject to wear and tear and usually even the 50-lev and 100-lev notes need to be replaced with new banknotes after a year and a half or two.
On new banknotes the Central Bank will spend 7.19 million levs, while for the minting of new 110 million units of coins – the cost will be 6.39 million levs. Apart from this, around 1.1 million levs will be spent on the production of commemorative coins.
Resources for the expertise and destruction of unfit banknotes and coins in 2014 will cost 1.01 million levs, while the costs of extracting scrap from silver coins to produce silver of investment market standard are 1 million levs. Consumables associated with the operation of the circulation, such as bands, thermo-shrinkable film, bags for the banknotes, vacuum envelopes, cards for dispatches of valuables, and bags for coins in 2014 will swallow a total of 159,000 levs, which is by 12,000 levs (8.2 %) more than the planned funds in the budget for 2013. On spare parts for machines that provide processing of banknotes and coins in BNB for 2014 will be spent 207,000 levs.
The greatest amount – 39.79 million levs will be devoured by what is needed for materials, services, and depreciation, as the most of these costs are the money for external services: 20.47 million levs. These are mainly tools for maintenance fees for software products operating for the BNB – and especially its payment and information systems. This item includes the 2.7 million levs paid by the Bank to the employees of the Ministry of Interior who guard the building of the Central Bank.
Sizable amounts are provided for missions to and participation fees of the Bank in various European and international organizations. The money related to the membership of BNB in the European System of Central Banks comes to 3.22 million levs. As stated in the budget for 2014 and C-Bank representatives will take part in committees and working groups of the ESCB, the European Commission and the EU Council. According to preliminary schedules the budget for 2014 planned 900,000 levs for missions related to the work of relevant committees and working groups. Included in this amount are the funds for the meetings of the European Banking Authority (EBA), as well as a contingency reserve for meetings, plus expenses that may arise as a result of a more active work of the committees and working groups.
The annual rental fee of telecommunication lines with the ECB amounts to 589,000 levs, which is by 17 % less compared to 2013. The contribution of the C-Bank to the European Banking Authority in 2014 amounts to 1.064 million levs and is by 17.1 % more than in 2013 because of the increased budget of EBA.
