Payments for real estate to be allowed only by bank transfer is an idea proposed by the parliamentary committee for the fight against organised crime in a meeting on November 13. The proposal was part of a package of changes for financial transactions, Dnevnik daily said. An idea which was renewed with the package was a limit on all cash payments to 10 000 leva. The package further included the formation of a financial police, which would enforce the new laws. The package of measures was prepared by the parliamentary committee on the basis of research by the UN development programme (UNDP). According to the chairperson of the committee Boiko Belikov, the aim of the measures was to hit organised crime, which had an interest in cash payments. To avoid artificial splitting up of the payment into smaller amounts, the proposal included a ban on split payments of one and the same deal, if the total value was more than 10 000 leva. The motive to make bank-transfers mandatory for real estate deals was that this would stop tax evasion, as the majority of real estate deals were officially declared at much lower values than market values. Experts expected a similar trend would happen with land-deals, as the prices of land continued to rise. The idea was fully supported by the Notarial Chamber, which pointed to French experiences. In France, all payments for real estate would go through the notaries of the Deposit office, who's management was employed by the French parliament. Chairperson of the Notarial Chamber Dimitar Tanev said that over the past year in Bulgaria 600 000 real estate deals have been closed. Head of Imoti real estate agency Valentin Cuikov referred to the idea as "propaganda", while the owner of Aristo, Tihomir Tsakov, that it would have more of a psychological, than any practical effect. Data from the companies showed that 85 per cent of real estate deals happened with bank credits and despite that, part of these deals did not declare the actual prices. Reason for this was that some banks would allow clients to book part of the value of a deal as expenses for finishing works or as consumer credits, which allowed them to save on taxes. The Confederation of Employers and Industrialists in Bulgaria (CEIB) said the limitation on cash payments would be of use to legitimate businesses. According to the Bulgarian trade-industrial court, the proposed limit could interfere with the freedom of trade and freedom of contract. At the same time, according to research, 70 per cent of its members support the proposal and would even lower the threshold to 5000 leva. Proposed changes were also supported by the National Revenue Agency which added the idea for individuals to have to account for loans larger than 5000 leva they had received. Finance Ministry insisted on an analysis of the effects the proposed limitation would have on the treasury, on economic turnover and the integrity of the financial system. Bulgarian National Bank (BNB) was against the use of a law to limit cash payments. The Association of Banks was even more categorical and did not support the idea of limiting cash payments. Not only the use, but also expenses of such a measure would first have to be examined, Irina Martseva, secretary general of the association said.