The current presentation represents an addition to the article “Obligations in commercial contracts and the /no/ realization during the state of emergency, announced in the Republic of Bulgaria - force major”, published on March 25th 2020 on “Kinkin and partners” website, and depicts the amendments and supplements in the Act on Measures and Actions during the State of emergency, declared with decision by the Bulgarian National Assembly on 13th March 2020, promulgated in the Official Gazette on April 09th 2020, which concern the present topic.
The current presentation is consistent with the legislation in force as of April 23rd 2020.
CONSEQUENCES OF DELAY IN PAYMENT OF DEBTS
Former text:
In the first version of the Act on Measures and Actions during the State of emergency, declared with decision by the Bulgarian National Assembly on 13th March 2020, it was stipulated that “until the state of emergency is revoked the consequences of delay in payment of debts of people with private legal status, including interests and defaults for delay in payments, as well as the non-financial consequences such as pre-term chargeability, breaking of contracts and confiscation of property, are not applicable.”
Present text:
Pursuant to the amendments and supplements in the Act on Measures and Actions during the State of emergency, declared with decision by the Bulgarian National Assembly on 13th March 2020, promulgated in the Official Gazette on April 09th 2020, the range of people with private legal status and the type of debts for which the consequences of delay in payment are not applicable, were specified. It was stipulated that “until the state of emergency is revoked in the case of delay in payment of debts of people with private legal status, namely debtors under contracts, regarding credits and other forms of finance (factoring, forfaiting, etc.), provided by banks and financial institutions under art.3 of the Act on Credit Institutions, inclusive of cases when the receipts are acquired by other banks, financial institutions or third persons, as well as under leasing contracts, interests on arrears or defaults are not imposed, debts cannot be declared as pre-term chargeable and contracts cannot be broken due to non-execution, or property cannot be confiscated.”
REDUCTION OF THE AMOUNT OF THE SUM/EXEMPTION FROM PAYMENT OF INSTALMENTS, REGARDING RENT AND USE OF STATE AND MUNICIPAL PROPERTY
Pursuant to the amendments and supplements of the Act, it was provided so that until the state of emergency is revoked by the virtue of the Council of Ministers ministers, governors of regions and administration directors, who have leased or provided the use of state property, or municipal councils, which have leased or provided the use of municipal property, can pass decisions, respectively issue orders, by the virtue of which the amount of the sums under the instalments for rent or use of such property can be reduced or private and legal entities, who have rented or used that property, can be fully or partially exempted from the payment of such instalments.
Conditions: Provided that you have rented or used such property, you can take advantage of the possibility, stated hereinabove, if your business has been limited or suspended as a result of the measures and restrictions, imposed during the period of time the state of emergency has been declared for.
