The market for non-performing loan (NPL) transactions is expected to grow, as a result of the COVID-19 pandemic. This article outlines some of the most important legal aspects around NPL transactions in Bulgaria.

Banks are privileged creditors in debt enforcement proceedings, according to a Constitutional Court ruling on 2 October 2012.

The Bulgarian National Bank (BNB) released the results of the banking system overview, which was initiated earlier this year.

New rules on financial institutions entered into force in May 2009. Existing financial institutions had to apply for registration under the new rules by 30 September 2009.