The case for transparency and good budgetary management assumes further significance in the evolving advocacy for channelling aid through the domestic budget. The provision of aid in the form of general budgetary support confers greater independence in the use of resources on recipient countries, stronger national ownership of development policies and programmes, and lower costs than those associated with multiple aid delivery modalities. For this intention to be achieved on a wide basis and the proffered benefits realised, donor governments and institutions must have confidence in mechanisms in place in recipient countries for the management of the budget. Worries about corruption and mismanagement are antithetical to this objective; hence the need for strengthened budgetary procedures, improved governance and transparency. There is a strong perception in the donor community that international assistance is required to help strengthen the public financial management systems and processes in aid receiving countries, including oversight by parliament, audit boards and civil society. Apart from the technical dimensions of the intervention, it is considered pertinent that, as may be relevant, the recipient countries should subscribe and adhere to, internationally sanctioned arrangements, such as the Extractive Industries Transparency Initiative (EITI), to ensure appropriate disclosure of revenue accruals and maximisation of inflows from national resources. Accountability is the natural concomitant of transparency. Indeed, the purpose of transparency is essentially the facilitation of accountability. In general, accountability refers to the obligation of those in authority to account to those on whose behalf they exercise such authority, for the discharge of the responsibilities entrusted to them.

With the implementation of TARGET2 and BISERA7, banks and their customers have at their disposal a reliable and secure infrastructure for processing small and large payments in euro. This is a proper opportunity to invite any of you who, for one reason or another, have not yet availed of the advantages entailed in joining these two systems to do so. The most direct and broadest everyday contact of the general public with the banking system is through the banknote and coin related services provided to individuals and businesses. This year’s great event in this area was the commencement of operations of the BNB Cash Centre in Sofia. Our Cash Centre is one of the state-of-the-art facilities for storage and processing of banknotes and coins within the European System of Central Banks, meeting the highest requirements to security and convenience of the serviced banks and CIT companies. Through it the BNB has also met its obligations with regard to currency distribution and destruction of unfit currency. In its newly opened cash centre the BNB continues to provide to its customers standard currency-related services. However, this is the proper time to share with you that more and more often we receive at the BNB complaints by citizens that banks have refused to exchange damaged Bulgarian banknotes or that customers have received such banknotes in ATM cash withdrawal transactions. This necessitates the conclusion that banks do not strictly observe the BNB requirements to the quality of banknotes and coins.