Bulgarian National Bank (BNB) governor Ivan Iskrov surprisingly submitted a resignation for his second term in office, due to start in October, on the morning of August 20 2009, only to be nominated for the job again by the ruling GERB party later in the day.

With Parliament meeting for a special session, Speaker Tsetska Tsacheva said that Iskrov submitted his resignation. The MPs voted to approve the request with 146 votes in favour and 59 against.

The motion was opposed by the Bulgarian Socialist Party and Movement for Rights and Freedoms, the two parties from the previous tripartite ruling coalition in Parliament. The previous legislature gave Iskrov his second term in May, much too early, according to the rules set out in the BNB Act.

Despite initial signals that the new Government could seek to oust Iskrov, it was decided, in the name of "the stability of Bulgaria's banking system", not to move to replace Iskrov. However, Prime Minister Boiko Borissov and his GERB party wanted to cancel the appointment of Iskrov's deputy, Ivan Nenovski, who was to take over the Issue department of the BNB. The department oversees the currency board agreement and the currency peg.

Having been re-assured that his replacement would not be sought, Iskrov nevertheless submitted his resignation, saying that he was elected to his second term under the same rules as Nenovski, whose appointment was protested by GERB and other right-wing parties.

Less than two hours after Parliament accepted Iskrov's resignation, GERB MPs Stoyan Mavrodiev and Dimitar Glavchev submitted his nomination anew. Iskrov was a proven and competent professional, Mavrodiev said.

"To maintain the financial and macroeconomic stability of the country, we need continuity in the work of the BNB. We want to give continuity a chance. Ivan Iskrov's resignation shows his respect of the country's laws and his high moral values," Mavrodiev was quoted as saying by website mediapool.bg.

Parliament is expected to elect the next BNB governor on August 26. The new governor will then make a suggestion for the deputy governor in charge of the Issue department, which has to be confirmed by Parliament.