Tsvetkova Bebov & Partners has advised on the preparation of the new Bulgarian Covered Bonds Act.
According to the Tsvetkova Bebov & Partners, “on March 29, 2022, the new Bulgarian Covered Bonds Act was promulgated in the country’s State Gazette. The Covered Bonds Act transposes the EU’s Covered Bonds Directive (EU) 2019/2162 and was prepared as part of a legislative project initiated by the Bulgarian Ministry of Finance supported by technical assistance from the European Bank for Reconstruction and Development.”
According to the firm, “the new Covered Bonds Act repeals the Mortgage Bonds Act and is expected to establish a comprehensive legal framework for the issuance of covered bonds and their supervision by the Bulgarian National Bank, which follows best international practice and applicable EU law. Key elements of the new legislation include requirements on cover pool composition, creation of security interest, coverage, and liquidity, as well as on the separation and administration of cover pools in the case of bankruptcy or resolution of the issuing bank. The act also lays out dedicated rules on the use of cover pool derivatives and extendable maturity structures, on cover pool monitors, as well as facilitates the issuance of jointly funded covered bonds and cross-border issuances by Bulgarian banks.”
Tsvetkova Bebov & Partners’ team included Managing Partner Nikolay Bebov, Partner Damyan Leshev, Counsel Maria Karacholova, Senior Associate Petar Ivanov, and Associate Kristina Dimitrova.