Practical Problems Of Repurchase And Securities Lending Transactions

Recently financial institutions are increasingly interested in obtaining opinions on the enforceability of repurchase transactions and securities lending transactions with Bulgarian counterparties. Some arguments will be outlined here as to why such transactions may be classified as financial collateral, thus ensuring their enforceability, including in cases of moratoriums and insolvency of Bulgarian counterparties under such deals (in item 1 below). In addition, some key contractual arrangements will be outlined that should be agreed upon to ensure applicability of the favourable Bulgarian financial collateral laws in this respect (in item 2 below) and to avoid harsh regulatory requirements (in item 3 below).