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The State of Emergency has been extended to 13 May

Breaking Legal Newsletter (13 April 2020)

The Act for Amendment and Supplement of the Act on Measures and Actions during the State of Emergency, declared by a decision of the National Assembly on the 13 March 2020, was promulgated on 9 April 2020 issue 34 of State Gazette (the “Act on Amendment and Supplement”).


Some of the adopted texts relate to the following:

  • The “60/40” measure is amended. For the period during which the Act on Measures and Actions during the State of Emergency is in force, but for no longer than 3 months, the National Social Security Institute will pay 60% of the social insurance income for January 2020 together with the due social security contributions which are at the account of the employers for persons that meet the criteria under Decree No. 55 of the Council of Ministers on 30 March 2020. 
  • Until abolishment of the state of emergency, in the case of delayed payment of obligations by individuals, debtors under credit agreements and other forms of financing (factoring, forfeiting, etc.) provided by banks and financial institutions, incl. when the due obligations were acquired by other banks, financial institutions or third parties, and under lease agreements, no default interests and penalties will be charged, the obligation cannot be due as a result of acceleration, the contract cannot be terminated due to default, and no property can be seized;
  • Until abolishment of the state of emergency, the relevant public authority, lessor of state or municipal property, can resolve and issue an order to reduce the amount of the due rental payment and facility fees or to fully or partially exempt the lessee from paying when the lessee, natural or legal person, has restricted or suspended their activity due to the measures and restrictions implemented during the state of emergency.
  • The Act on Amendment and Supplement provides an opportunity for state and local authorities, commissions, etc. to hold meetings remotely during the state of emergency, while ensuring a direct and virtual participation in compliance with the requirements for quorum and personal voting, or to adopt decision in default.
  • Until abolishment of the state of emergency, open court hearings, including the hearings of the Competition Protection Commission, can be held remotely when a direct and virtual participation of all parties and participants in the process or, respectively, proceedings is ensured. The court, or the Competition Protection Commission has to notify the parties in case the hearing will be held remotely.
  • An Appendix to the Act for Amendment and Supplement is created. The Appendix consists of a list of all cases for which the suspension of terms during the state of emergency will not apply. The Appendix includes a number of civil and commercial proceedings, administrative proceedings and criminal proceedings, as well as security proceedings. The terms for these proceedings, suspended before the amendments, shall continue 7 days after the promulgation of the Act on Amendment and Supplement in the State Gazette;
  • There will be no extension of the terms for proceedings related to awarding public procurement, concession procedures, proceedings under the European Structural and Investment Funds Management Act, proceedings under Chapter Three of the State Property Act and Chapter Three of the Municipal Property Act, the proceedings under the Agricultural Producers Support Act, the proceedings under the Ownership and Use of Agricultural Land Act, the proceedings under the Forest Act, procedures under the Act for implementation of the Common Organization of Agricultural Markets of the European Union, the proceedings under the Veterinary Medicine Act, the  proceedings under the Spatial Planning Act and proceedings under the Competition Protection Act;
  • A tour operator who is required to reimburse a traveller for a tourist trip that has been cancelled due to the state of emergency may offer the traveller a voucher for the amount paid. If the traveller does not accept the voucher and in absence of another agreement between the tour operator and the traveller for a substitute tourist package, the tour operator shall reimburse the traveller not later than one month from the date of cancellation of the emergency.
  • Some terms under the Anti money Laundering Act (the “AML Act”) are suspended. Until the state of emergency is abolished, the term for adopting internal rules for control and prevention of money laundering and terrorism financing, setting up special service entity within the meaning of the AML Act and notification to the Financial Intelligence Directorate of the State Agency for National Security are suspended in the occasions foreseen in the Act for Amendment and Supplement;
  • The amount of some penalties related to non-compliance with the anti-epidemic measures has been reduced;

The Act for Amendment and Supplement of Measures and Actions during the State of Emergency Act, declared with a decision of the National Assembly on the 13 March 2020 shall enter into force on the day of its promulgation in the State Gazette, except for the provisions concerning the inapplicability of the term extension for certain proceedings that will enter into force 7 days after the promulgation.

Deloitte Legal Law Firm remains at your disposal for further information and questions.Deloitte Legal Law emergency contacts: 

  • Attorney-at-law Reneta Petkova - Managing Partner, Banking and Finance, email: rpetkova@deloittece.com
  • Attorney-at-law Georgi Simeonov – Director, Tax practice, email: gsimeonov@deloittece.com
  • Attorney-at-law Zvezdelina Filova - Senior Manager, Labour and Commercial Disputes, email: zfilova@deloittece.com
  • Attorney-at-law Miglena Micheva - Manager, Labour Law, email: mmicheva@deloittece.com
  • Attorney-at-law Kaloyan Yordanov - Manager, Commercial and Corporate Law, email: kyordanov@deloittece.com  
  • Attorney-at-law Adelina Mitkova - Manager, Banking and Finance, email: amitkova@deloittece.com 
  • Attorney-at-law Pavlin Stoyanoff - Manager, Energy and Resources, email: pstoyanoff@deloittece.com
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