Reform of the payment and financial services regulation
At the end of 2010 in the State Gazette has been promulgated an amendment to the Payment Services and Payments Systems Act (PSPSA), which will enter into force on the 30th April 2011. The amendment transposes the new E-money Directive (Directive 2009/110/EC), which reforms in a revolutionary manner the concept and the regulation of e-money issuing institutions throughout Europe. Further, the new act transposes the Finality of Settlement Directive (Directive 98/26/EC), as amended with Directive 2009/44/EC, thus fully harmonizing the Bulgarian payment services legislation with the legal framework of the European Union.
The reform affects also the Financial Arrangements Collateral Act, making this specific collateral form applicable to financial institutions, which from 30th of June (effective date of the amendment) may pledge their receivables from clients in a facilitated manner. This new regulation shall provide to financial institutions more advantageous access to external financing, by reducing the transactional costs for provision and foreclosure of a collateral.
