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Consumer Loan Act Changes Pass 1st Reading in Bulgaria's Parliament

Business | March 7, 2014, Friday // 10:35| Views: 906 | Comments: 0
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Bulgaria: Consumer Loan Act Changes Pass 1st Reading in Bulgaria's Parliament Photo by BGNES

A set of amendments to the Consumer Loan Act passed first reading in Bulgaria's Parliament.

The legal changes, put forth by Yordan Tsonev, MP from liberal party Movement for Rights and Freedoms (DPS) and Rumen Gechev, MP from the Bulgarian Socialist Party (BSP), were approved with 99 votes in favor, 4 votes against and 7 abstentions, according to reports of dnevnik.bg.

Under the amendments, the early settlement of mortgage loans will not be accompanied by a penalty interest after the first year.

The amendments also envisage an opportunity for the borrower to choose whether to guarantee the loan with their entire property or only to the amount of the guarantee of repayment, the latter being a more expensive option.

The legal changes revoke the fee charged for reviewing loan applications.

The amendments also bring loans of less than BGN 400 under regulation, as they are currently outside the scope of this law.

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Tags: consumer loans, Bulgarian Parliament, Bulgarian Socialist Party, BSP, Movement for Rights and Freedoms, DPS, mortgage loans
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