english
български deutsch italiano
Varadinov & Co.
Legal Bulletin

Varadinov & Co Attorneys at law is recognised in the IFLR1000
IFLR2017
IFLR2017
IFLR2016
IFLR2015
IFLR2014
Varadinov & Co Attorneys at law is listed in Legal 500
Legal500

State Gazette, issue 60 /July 20th, 2018
Differentiated support for the integration of people with disabilities is stipulated in the amendments of the law. The monthly allowance for persons with permanent disabilities over the age of 18 will no longer be determined after an individual social assessment of their needs and capacities determined by the degree of reduced capacity to work or the type and extent of the disability. The basis for determining the amount of the monthly supplement for social integration is the guaranteed minimum income, which is determined by the Council of Ministers under Art. 12, para. 3 of the Social Assistance Act. The terms and procedure for granting, amending, suspending, terminating and resuming the supplement shall be determined by the regulation for the implementation of the law.
The sizes of the various types of monthly social integration allowances are defined as a percentage of the guaranteed minimum income, and the relevant conditions for granting them are presented - the submission of a document certifying the duration of the training; actual costs incurred, including one accompanying person if he / she used foreign aid. The maximum amount of targeted aid is determined and updated by an order of the Minister of Labor and Social Policy in coordination with the Minister of Finance, the Minister of Economy and the Minister of Health. The proceedings, which have begun and have not been completed before the enactment of this law, are completed in the new order. Monthly training grants awarded from 15 June 2018 to the entry into force of this Act without a document certifying the duration of the training are suspended and the supplement resumed after its submission.

State Gazette, issue 61 /July 24th, 2018
Applying the recommendations of the European Banking Authority, which define the appropriate practices in the field of large exposures and establishment of connectivity among clients of the Bank, regulates the Ordinance No. 37/16 July 2018 on Internal Exposures of Banks issued by the BNB Governing Council. The Ordinance regulates the requirements of the internal rules and procedures for the formation, monitoring and reporting of internal exposures that banks should adopt in order to identify the risks associated with them. The Ordinance regulates the calculation of the internal exposures of banks, the form and content of the internal exposures reports, as well as the order of their submission to the BNB. Decisions on the formation of internal exposures shall be taken only with the unanimous decision of the bank’s board of directors, respectively of the executive members of the board of directors, and after prior approval by its supervisory board or non-executive members of the board of directors respectively. This line does not apply to the formation of exposures to persons under Art. 45, para. 1 (1) and 4 of the Credit Institutions Act (CIA) where the total exposure to an individual does not exceed its gross annual remuneration or is within a limit previously determined by the supervisory board or by the members of the board of directors , which are not executive members. The limit is determined according to the volume and scope of the activities performed by the bank and the internal exposures it forms, and may not exceed the amount of BGN 300,000 to each individual person. The banks shall notify the BNB of the decisions of the respective competent body of the bank regarding the limits so set.

The Banks adopt and apply internal rules and procedures for the formation, identification, monitoring and reporting of internal exposures that govern the order and manner of formation and identification of internal exposures and the calculation of their value; mechanisms to ensure compliance with the law and internal rules regarding internal exposures; the procedure for informing the bank’s board of directors (board of directors) about the size and credit quality of internal exposures; the procedure for reporting internal exposures to the BNB. The rules and procedures shall ensure that the bank: has information to allow it, in good faith and with due diligence, to identify the persons under Art. 45, para. 1 of the CIА; prepares and maintains an up-to-date register for the persons under Art. 45, para. 1 of the CIA and the exposures to them; monitor and manage adequately all risks relevant to exposures. The rules and procedures include a mechanism for tracking the control line or qualified shareholding to the actual owner of the persons under Art. 45, para. 1 of the CIA containing effective procedures for collecting, checking and analyzing the necessary information; procedure for identifying the main business partners of the persons under Art. 45, para. 1 of the CIA to which the bank has exposures and periodically updating this information. The rules and procedures set out specific responsibilities for the internal audit service to carry out the verification of the internal exposure reporting, monitoring and reporting process at least once a year. Banks shall submit a copy of the rules to the BNB within 10 days of their adoption, respectively by submitting amendments and supplements thereto. The BNB uses the internal exposures reports and notifications, implementing them in the process of supervising and evaluating the activities of the banks under Art. 79 c of the Banks adopt and apply internal rules and procedures for the formation, identification, monitoring and reporting of internal exposures that govern the order and manner of formation and identification of internal exposures and the calculation of their value; mechanisms to ensure compliance with the law and internal rules regarding internal exposures; the procedure for informing the bank’s board of directors (board of directors) about the size and credit quality of internal exposures; the procedure for reporting internal exposures to the BNB. The rules and procedures shall ensure that the bank: has information to allow it, in good faith and with due diligence, to identify the persons under Art. 45, para. 1 of the CIA; prepares and maintains an up-to-date register for the persons under Art. 45, para. 1 of the CIA and the exposures to them; monitor and manage adequately all risks relevant to exposures. The rules and procedures include a mechanism for tracking the control line or qualified shareholding to the actual owner of the persons under Art. 45, para. 1 of the CIA containing effective procedures for collecting, checking and analyzing the necessary information; procedure for identifying the main business partners of the persons under Art. 45, para. 1 of the CIA to which the bank has exposures and periodically updating this information. The rules and procedures set out specific responsibilities for the internal audit service to carry out the verification of the internal exposure reporting, monitoring and reporting process at least once a year. Banks shall submit a copy of the rules to the BNB within 10 days of their adoption, respectively by submitting amendments and supplements thereto. The BNB uses the internal exposures reports and notifications, implementing them in the process of supervising and evaluating the activities of the banks under Art. 79c of the CIA. The BNB may require the submission of additional data and documents to certify compliance with the requirements of the CIA and this Ordinance.. The BNB may require the submission of additional data and documents to certify compliance with the requirements of the CIA and this Ordinance.

State Gazette, issue 62 /July 27th, 2018
More effective control as a measure against the gray sector in the fuel market and increased energy security aims at the new Law on Administrative Regulation of Economic Activities Related to Oil and Petroleum Products. The law regulates the conditions and procedure for registration and the control of persons engaged in economic activities related to oil and petroleum products. Under the law, economic activities related to oil and petroleum products are: wholesale of petroleum and petroleum products; retail of petroleum and petroleum products; storage of petroleum and products of petroleum origin outside the tax warehouses or warehouses of registered recipients within the meaning of the Excise Duties and Tax Warehouses Act; transport of petroleum and petroleum products; Filling of LPG bottles outside tax warehouses; distribution of bottles of LPG; temporary storage and / or loading by a farmer registered under the Agricultural Producers Support Act of his own products of petroleum origin, outside of tax warehouses or warehouses of registered recipients within the meaning of the Excise Duties and Tax Warehouses Act, economic activity of the farmer which is not subject to subsequent sale. The activities related to prospecting, exploration and extraction of oil and natural gas are not subject to the law; deliveries under Art. 24, para. 1, item 1 and Art. 26, para. 2 of the Excise Duties and Tax Warehouses Act; sales of LPG bottles from persons not registered under this Act when they are carried out under a contract with a registered person under this Act; the production of fuels from the processing of used tires and plastic products; the use of solid petroleum products. The administrative regulation of economic activities related to oil and petroleum products is carried out by the Minister of Economy, assisted by a specialized unit and an advisory council, which is an advisory body for cooperation between the public authorities and the persons conducting economic activities related to oil and products of petroleum origin.
Any person acting under the law is subject to registration, with the exception of state and local authorities. In order to be registered for carrying out an activity, any person should meet the following conditions: be a trader registered under the Commerce Act, the Cooperative Act or the legislation of another Member State of the European Union or a State party to the Agreement on the European economic area, or be a farmer registered under the Agricultural Producers Support Act, which carries out activities under Art. 2, para. 1, item 7; is not in bankruptcy or liquidation proceedings; has not terminated registration under Art. 176 of the Value Added Tax Act; the sole owner, the majority owners of the capital, the directors, the procurators, the members of the management or supervisory body of the person: (a) have not been convicted of an intentional crime of a general nature; (b) are not or have not been members of a management or supervisory body or unlimited liability partners in a company discontinued due to bankruptcy if any unsatisfied creditors remain; (c) are not placed under full or limited guardianship; (d) have not been owners or members of management or supervisory bodies in a company which, at the time of filing the application for registration and / or the previous year, has outstanding obligations to establish or maintain its individually determined stock levels under the Stocktaking Act. oil and petroleum products, established by a punitive decree; 5. there are no obligations for taxes and compulsory insurance contributions, except for liabilities under not entered into force acts, as well as deferred, deferred or secured liabilities; 6. there are no outstanding obligations for creation or storage of its individually determined levels of reserves under the Oil and Petroleum Stocks Act, established by a punitive decree, unless they were paid at the time of filing the application. In order to be registered for carrying out activity under Art. 2, para. 1, item 7, each person has to fulfill the following conditions: to be registered as a farmer under the procedure of the Agricultural Producers Support Act and to have his / her own, hired and / or use on another legal basis agricultural machinery.
There are also special conditions for registration: each trader must have paid-up capital in the amount of not less than BGN 1 000 000 and for a person who has no capital by law - to have assets in the amount not less than 1 000 000 BGN, less than BGN 1 000 000. For retailers, the paid-in capital must be at least BGN 20 000, and for a person who has no capital according to law - to have property in the amount of not less than 20 BGN 000 per site. Depending on the different types of activities, there are other specific registration requirements. When submitting an application for registration, the persons are obliged to provide collateral, which serves for the fulfillment of outstanding obligations arising under this Act, the Oil and Petroleum Products Stocks Act, the Clean Air Act, the Excise Duties and Tax Warehouses Act and the Law for value added tax, except for liabilities for which collateral is provided on another legal basis. The collateral may be constituted by a cash deposit or an unconditional and irrevocable bank guarantee. When providing security in money, the person pays the security in Bulgarian levs to an account of the Ministry of Economy. When providing collateral in a guarantee, the Bank undertakes unconditionally and irrevocably to pay at the first written request by the Minister of Economy the amount specified in the request up to the amount of the guarantee. The term of the guarantee may not be shorter than one year and six months from the date of filing of the application and within 14 days before the expiry of the previous term, the registered person shall be obliged to provide a new security. No interest is payable on the collateral deposited in cash. The amount of the security depends on the economic activities related to the petroleum and products of petroleum origin for which the person applies for registration. In the event of a change in the circumstances relevant to determining the amount of the security, the person shall provide a new security and submit a new application within 7 days prior to the amendment.
The security shall be released and the person shall be deleted from the register under Art. 16, para. 1 before the expiration of the term under Art. 10, para. 3, when the registration of the person under this Act is terminated and there are no outstanding obligations. To release the security, the person shall submit a request to the Minister of Economy. The guarantee shall be released within 30 days of receipt of the request in the case where no verification has been given within the same time limit for establishing the existence or absence of outstanding obligations. Where there is an outstanding debt, at the request of the relevant public authority, which has established the receivables referred to in Art. 9, para. 2 ordinances, the Minister of Economy orders the specialized unit to take the necessary actions for the absorption of the collateral. Assimilation may also take place before the enforceable Аct enters into force when its execution is admissible.