BULGARIA Law and Practice Contributed by: Nikolay Cvetanov, Boris Lazarov, Asen Apostolov and Patrizia Foffo, Penkov, Markov & Partners
Directive (EU) 2023/2673 The regulation outlined in the directive focuses on financial services contracts concluded from distance. It amends the currently applicable Directive 2011/83/EU and repeals Directive 2002/65/EC. The key aim is to modernise con - sumer protection in the context of digitalisation and technological advancements, particularly for distance contracts involving financial services. The regulation addresses the rights of consum - ers related to pre-contractual information, the right of withdrawal, and ensures online fairness in automated financial transactions. Considering the evolving role of the banks when it comes to provision of distant financial services, the directive will have a direct impact on the local regulatory environment. Regarding transposi - tion, Bulgaria and other EU member states are required to adopt and publish the necessary laws, regulations, and administrative provisions by 19 December 2025. These measures must be With the adoption on 13 June 2024, of Directive (EU) 2024/1760, (known as the “Greenwashing Directive”), and the upcoming Green Claims Directive (soon to be adopted by the European Parliament), the ESG framework in the Euro - pean Union will be significantly strengthened. Currently there are no relevant draft bills in the legislative pipeline. applied starting from 19 June 2026. Greenwashing and Green Claims These directives aim to prevent misleading environmental claims by requiring companies (including banks) to ensure that any sustainabil - ity-related statements are accurate, clear, and substantiated by evidence. As a result, busi - nesses will be subject to stricter regulations on how they communicate their environmental impact, promoting greater transparency and accountability.
in 2024, detailing the transition of the official currency from the lev to the euro. Key points include currency conversion rules, exchange mechanisms, and automatic conversions of bank accounts and legal instruments regard - ing the exchange in particular regions. There will be a one-month “dual circulation period” from the date of euro adoption, in which the lev will continue to be legally admissible. A key point in the Euro Act is that the traders must display prices in both currencies for a period of 12 months. Provisions are in place for convert - ing company capital, handling interest rates on loans, and updating accounting systems. Non- compliance with these regulations will result in penalties. Naturally, all the above changes affect the banks considering their economic role and specific activities. Directive (EU) 2023/2225 (the “New Consumer Credit Directive”) The New Consumer Credit Directive addresses issues related to consumer protection, especial - ly in light of new market developments such as digitalisation and the emergence of new credit products. Also, it seeks to create a more har - monised regulatory framework across the EU, ensuring transparency (providing information before the conclusion of the credit agreement), improved creditworthiness assessments on the basis of appropriate and accurate information on the consumer’s income, expenditures related to the cancellation, termination and early payment methods, etc. The directive also introduces pro - visions related to new financial products such as “buy now, pay later” schemes, as well as related to the technological advances in the credit mar - ket. As far as its transposition in Bulgaria is con - cerned, the directive must be implemented into national law by 20 November 2025. However, it enters into force and shall be applied after 26 November 2026.
88
CHAMBERS.COM
Powered by FlippingBook