- April 9, 2020
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Update on and Amendments to the State of Emergency Act
The Amending and Supplementing Act (“Amending and Supplementing Act”) to the State of Emergency Measures Act, during the State of Emergency declared pursuant to the Resolution of the Bulgarian Parliament of 13 March 2020, adopted on 6 April 2020 (the “State of Emergency Act”) was promulgated in a special edition of the State Gazette on 9 April 2020.
Following is a summary of the principle changes in the State Emergency Act.
Changes to the so-called 60/40 employers support scheme
According to the amendments of the State Emergency Act, the Bulgarian National Social Security Institute will pay to employers the social security contributions due by the employers in addition to 60% of the social security income for January 2020.
According to clarifications by the Minister of Labour and Social Policy, pursuant to the change the Bulgarian National Social Security Institute will pay the social security contributions due as regards to the 60% of the social security income, which are due by the employer, and not on the total amount of the salary.
Measures regarding delayed payments
Pursuant to the Amending and Supplementing Act the provision of Article 6 of the State of Emergency Act is amended and the scope of persons towards which the unfavourable consequences resulting from delay of payment (such as immediate maturity, delayed payment interest and penalties, cancellation/termination of agreements) shall not take place is limited.
Based on the amendment, the unfavourable consequences shall not take place only as regards to private persons, borrowers under credit and other types of financing agreements (factoring, forfeiting etc), provided by banks and financial institutions under Article 3 of the Credit Institutions Act, including where the receivables are acquired by other banks, financial institutions and third persons and under leasing agreements.
Changes to the provisions, that set forth suspension of terms under court cases
The Amending and Supplementing Act explicitly lists the categories of court cases whereunder (by exception) the court terms are not suspended for the duration of the State of Emergency.
The rule on suspension of the terms during which to comply with instructions provided by state authorities to parties or participants in administrative proceedings is repealed, save for proceedings under the EU Structural and Investment Funds Management Act.
The said changes enter into force on 16 April 2020.
Changes to the rules on extension of terms, which expire during the State of Emergency
The general rule on extension of the terms that expire during the State of Emergency (different from terms under court cases) remains effective, but a number of exceptions is introduced under the Amending and Supplementing Act.
For example, the extension shall not apply to public procurement procedures, concession procedures, proceedings under the Territory Development Act and the Competition Protection Act etc.
The said change enters into force on 16 April 2020.
The term to adopt new Internal Rules under the Bulgarian Anti-Money Laundering Measures Act shall be suspended
The six months term, as of the release of the National Risk Assessment on 9 January 2020, to update the Internal Rules in accordance with the Bulgarian Anti-Money Laundering Measures Act shall be suspended until the State of Emergency is repealed.
No court vacation
There will be no court vacation (taking place in the summer months) in 2020.
The above summary does not exhaustively set out all measures and the complete regulation set forth in the Emergency Measures Act and is not an advice as regards to a specific scenario.
We remain at your disposal to discuss any questions that may arise in relation to the measures and steps set forth in the Emergency Measures Act.
Sincerely,
Atanassov and Ivanov Law Firm
23 Serdica Str.
Sofia 1202, Bulgaria
tel. (+359 2) 983 67 87
fax (+359 2) 983 67 84
e-mail: office@atanassovivanov.com
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