STANDSTILL MEASURES IN BULGARIA OVER CONSEQUENCES DUE TO PAYMENT DEFAULT

The Bulgarian parliament introduced a standstill period concerning the monetary and non-monetary consequences which arise from payment default under all type of contracts, among other measures in the Act on the measures and actions during the state of emergency, adopted on 20 and on 23 March 2020 in response to COVID-19 ("State of Emergency Act" or "Act"). The approved text is broader than the intended moratorium over the default interest under mortgage loans, which has led to public criticism of the potential effects of the Act and may trigger further amendments. In order to learn more, please download the file below.