As of 13 March 2020, the Bulgarian Parliament enacted the State of Emergency Act and declared a state of national emergency, initially set to last a month and subsequently extended by amendments to the act as of 9 April (“Amended Act”), to end on 13 May 2020. In compliance with the law, the Bulgarian government is implementing a package of measures directed to businesses and individuals to mitigate the economic impact of COVID-19. 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 (“State of Emergency Act” or “Act”). As a result of the Act, remedies relating to payments under the following types of contract are brought to a standstill:
- Loans or other forms of financing (factoring, forfeiting and others) provided by banks or financial institutions; and
- Operating and financial lease agreements.
Typically, both of these types of contracts would involve periodic payments.
