Financial law

Every third pensioner in Bulgaria is at risk of poverty. This is the data of the European Statistical Office Eurostat for 2017. By this indicator the country ranks fourth in the European Union. The three Baltic republics are ahead of Bulgaria, reports Dnevnik. 

March should see the launch of a new mechanism for the out-of-court settlement of debts by individuals, whether they enjoy the provisions of the so-called Katseli law or not, via a special platform that is currently under preparation.

The government is expected to include debts that expired in 2018 in the provisions of the recently revised out-of-court debt settlement mechanism.

The government proposed on Friday an out-of-court settlement model to banks for the debts that individuals owe to them, which foresees the subsidization of payment tranches so as to protect the main residences of debtors who are unable to meet the requirements of their arrangements.

The government is considering offering a package of possible arrangements for corporations' and self-employed professionals' debts to the state, although the settlements to be proposed have been rejected by the country's creditors in the past.

The new debt repayment mechanism that the government is negotiating with its creditors provides for haircuts on debts to the tax authorities and social security funds and the payment of what remains in up to 120 installments.

Turkey has issued an asset-backed security worth 3.15 billion Turkish Liras ($590 million), the country's Treasury and Finance Ministry said in a statement on Dec. 7.

While the government appears to be considering extending the protection of debtors' main residence in some form, this is not likely to be in the context of existing legislation which expires at the end of the year.

Meanwhile, talks with creditors on the possibility of a fresh repayment plan for up to 120 installments have frozen.

The Turkish Treasury on Nov. 1 forecasted the foreign debt payment to total $10.8 billion for next year.

The European Bank for Reconstruction and Development (EBRD) and Waterfall Asset Management have joined B2Holding in investing in a bad loan portfolio originated by Greece's Alpha Bank, EBRD said on Monday.