Banking Law

The Banking Law in Bulgaria covers all legal issues arising from the banks business activity, operations with clients and transactions. The Banking Law in Bulgaria regulates the legal relations, in which banks and other credit institutions engaged in. Therefore, all natural persons, companies and institutions, which have dealings with the bank system, are subject to the regulation by the banking law. Remittances, credits, pledges, loans, mortgages, etc., all these are directly related to the banking law.

Regulations of the typical banking transactions in Bulgaria are to be found mainly in the Bulgarian Commercial Act. Additional rules concerning credits and financial aids are stipulated in the Bulgarian Obligations and Contracts Act (ZZD). Loan securities such as mortgages or guarantees are also envisaged in the Bulgarian Obligations and Contracts Act. A wide range of special laws contains further banking regulations.

Our law firm advices bank customers on their contract negotiations with bank institutions in Bulgaria. Our highly qualified team can review your bank contracts, find loopholes in the contract clauses and in this way secure the risks connected with your business interaction with strengthen with the bank institutions.

In cases of difficulties concerning the debt service the banks resort to foreclosure and loan termination procedures. Law firm Ruskov & Coll. can advice you and offer you a professional legal assistance in critical loan situations. It is important to have an experienced lawyer to react timely and with understanding. The sooner you realize the danger, the better our lawyers can help you protect your rights and interests.

The banks tend to bind the granting of a credit upon the condition that another person in addition to the borrower agrees to assume liability for the debt payment and often those persons are parents, brothers and sisters, relatives, etc. They are referred to as a loan guarantor or jointly liable debtor. However, the existing law envisages certain limitations in securing loans through such guarantees. The grant of guarantee between close relatives is not always allowed. The same applies to certain types of joint liability. Our lawyers find out whether you can indeed be held liable for others’ debts.

We provide comprehensive legal banking services in Bulgaria. In particular, in the following areas:

  • bank guarantees
  • Credit lines
  • Asset management contracts and financing project
  • Public-Private Partnership financing
  • Legal analysis of credit termination and cancelation
  • Legal analysis in cases concerning guarantees and review of joint liability
  • Examination of construction financing models and contracts
  • Advice on commercial loans
  • Advice on other related transactions
  • Assistance with rescheduling and repayment of debts