Financial Crime World

Bulgarian Lawmakers Tighten Grip on Collateral Securitization

In an effort to bolster financial stability, the Bulgarian government has introduced stricter regulations governing the securitization of collateral in various forms. These new measures aim to ensure transparency and predictability in the process of pledging assets as security for loans or other obligations.

Pledges over Intellectual Property Rights (IPRs)

To secure intellectual property rights such as trademarks, patents, and utility models, borrowers must now register with the Bulgarian Patent Office. This requires:

  • A notarized agreement
  • Payment of a registration fee of BGN 60

Pledges over Shares in Limited Liability Companies or General/Limited Partnerships

Securing shares in limited liability companies, general partnerships, or limited partnerships necessitates:

  • A notarized pledge agreement
  • Registration with the Commercial Register
  • Notification to the company that their claims for dividends are also pledged

Pledges over Electronic Shares in Joint Stock Companies

Electronic shares in joint stock companies can be secured through:

  • Registration with the Central Depository
  • Notification to the company
  • A recording fee of BGN 40 per page, plus a handling fee of 0.3% (minimum BGN 300)

Pledges over Specific Movables and Inventory

Securing specific movables and inventory requires:

  • A notarized pledge agreement
  • Registration with the Central Special Pledges Register
  • Fees capped at BGN 40 per page

Mortgages

To secure mortgages over real property, borrowers must pay a state fee of:

  • 0.1% of the secured claims to the Property Register
  • Notarial fees (costs vary depending on the type and value of the property)

Notary Fees

In all cases involving notarized documents, fees will be calculated based on the total amount of the secured claims. These fees are capped at:

  • BGN 6,000 per document

These new regulations aim to promote a more stable and transparent financial environment in Bulgaria, providing greater protection for lenders and borrowers alike.