Complete State Control Over Banking

On 25 December 1947, the Bulgarian government passed a new law that gave the state complete control over the banking system. As a result of this law, 31 Bulgarian and foreign banks were nationalized—meaning they were taken over by the government.

This marked the end of the market economy in Bulgaria. From this point on, the country moved to a centrally planned system, where all economic activities were controlled by the Communist Party. Private entrepreneurship was no longer allowed, and management of all businesses was handed over to party officials, many of whom had no experience in running businesses.

No Private Businesses Left

After this transformation, not a single private business remained in Bulgaria. There were no privately owned shops, factories, workshops, or even small craft studios. The state owned and controlled everything Istanbul Day Trip.

Even urban homes and apartments were not safe from expropriation. In 1948, special housing committees were formed by local governments to take over homes from wealthier citizens. These homes were often used to house party functionaries, clerks, and newcomers from rural areas who supported the communist regime.

Many homes were also given to the relatives of victims of political purges—people labeled as “enemies of the people,” many of whom had been executed, imprisoned, or sent to forced labor camps.

Law on Urban Property and Personal Confiscation

The Urban House Property Bill, passed in the late 1940s, allowed for the full or partial confiscation of properties such as:

Houses
Apartments
Villas
Offices

Citizens with larger or more valuable properties were targeted. Their wealth was considered “unjust” or “dangerous” to the goals of socialism. They were often forced to share their homes or give up part of their living space to strangers loyal to the regime.

The government used propaganda to justify these actions, claiming it was done for the benefit of the people. However, the real goal was to weaken the influence of the former middle and upper classes and punish opposition.

Economic Burden and Hidden Costs

Although these nationalizations and confiscations were presented as victories for socialism, they came at a huge cost. The government had to spend millions to maintain the newly nationalized businesses and homes. Often, these enterprises became inefficient, poorly managed, and unproductive, as they were now controlled by unqualified party members.

Even Communist Party documents later admitted that only a small percentage of the wealth taken from citizens actually helped the economy. Most of it was lost due to poor planning and corruption.

Religious Persecution

Alongside the economic and political changes, the communist regime also launched a campaign against the church. Following Karl Marx’s belief that “religion is the opium of the people,” the government sought to limit the influence of religious institutions. Churches were closely monitored, many were shut down, and religious leaders were often arrested, harassed, or forced to conform to state-approved teachings.

A Country Under Total State Control

By the end of the 1940s, Bulgaria had become a fully controlled socialist state, with no private property, no free business activity, and limited personal freedoms. The government owned everything, from banks to homes, and even tried to control people’s beliefs. What was presented as progress was, in reality, a period of hardship, fear, and repression for many Bulgarian citizens.