BBN Estonia should seek the European Central Bank’s opinion before approving a bill designed to protect people who are behind on debt payments to their creditors, Estonia's central bank Eesti Pank said, reported Bloomberg.
European Union rules require Estonia to consult with the ECB on any legislation in its competency, including rules governing financial institutions, according to an Oct. 19 letter from the central bank posted on parliament’s website. Estonia’s banks and employers have opposed the debt-restructuring bill, saying it will increase borrowing costs and reduce lending.
“Considering that the implementation of the present draft could have a serious effect on the financial institutions and financial stability, it would be proper, in Eesti Pank’s assessment, to carry out consultation,” the central bank said.
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