By Tsvetan Krumov
The amendments provide new business opportunities to banks to enter into repo transactions and derivatives with Bulgarian pension funds.
There are various types of private social security funds under Bulgarian law depending on the social security risks they cover. However, as the regime for derivatives and repo transactions is identical for all types of funds, no differentiation is necessary for the purposes of this paper. The term “Pension Funds” as used here thus covers all social security funds under the Bulgarian Social Security Code (the Code).
Certain amendments to the Code which will enter into force on 18 November 2018 will change the regime for derivatives and repo transactions with Bulgarian Pension Funds, and these will be briefly outlined below.