Certain bank insolvency provisions declared unconstitutional   

On 27.05.2021 the Constitutional Court of the Republic of Bulgaria adopted Decision No 8 on Interpretative case No 9/2020. The case was admitted for consideration with an Admissibility Order of 20.10.2020 (click here for more details).

In its decision, the Constitutional Court declared as unconstitutional:   

► The provisions of § 5, para. 1- 4, § 6, para. 1 and 2, § 7 and § 8 of the Transitional and Final Provisions of the Amending and Supplementing Act of the Bank Insolvency Act (BIA);

► Art. 60a, para. 1 of the Bank Insolvency Act, § 16 of the Amending and Supplementing Act of the Bank Insolvency Act (BIA); and   

► Art. 60b, para. 1, 2 and 3 of the Bank Insolvency Act.

The Constitutional Court finds that the disputed provisions of the BIA are unconstitutional as they violate the principle of rule of law (Article 4, paragraph 1 of the Constitution), the principle of equality before the law (Article 6, paragraph 2 of the Constitution), and the principle of inviolability of private property (Art. 17, para. 1 and para. 3 of the Constitution).   

The decision is mandatory for all civil courts. They should take into account the declared unconstitutionality when resolving cases in which the provisions in question are relevant to the proper resolution of disputes.