After the collapse of the Cypriot financial system and one of the oldest and biggest Cypriot banks Marfin Popular Bank Public Co., the Law Firm was contacted in December 2013 with a request for provision of legal services as trusted advisor of the bank in Bulgaria for many years. Pursuant to the Sale of Certain Operations of Cyprus Popular Bank Public Co Ltd Decree 2013, which is issued by the Central Bank of Cyprus under Law 2013 on Restructuring Credit and Other Institutions, from March 29th, 2013, the majority of assets and loans of Marfin Popular Bank Public Co Ltd. have been absorbed by the Bank of Cyprus. The transfer of assets by the virtue of the Decree of the Central Bank of Cyprus affected the receivables of the bank which were secured with a number of collaterals such as a mortgage of real estates in Bulgaria, a corporate guarantee by Bulgarian company and a pledge of shares of Bulgarian company. The legal challenge to BWSP Ilieva, Voutcheva & Co. Law Firm was to secure the transfer of the securities to the acquiring Bank of Cyprus without jeopardizing the priority of the securities. This involved EU regulations application, controversy and lack of identical legal figures in Bulgarian and Cypriot national legislations, as well as interweaving of the requirements to the transfer of the main receivables in both legislations and the requirements to the transfer of its collaterals. The major challenge as from legal point of view is the uniqueness of the closing of major Cypriot banks by means of resolution of the EU and subsequently by the Central Bank of Cyprus. Up to now our Law Firm provided opinion on the best solutions of the situation as well as relevant actions to be undertaken. We are now in process of their application and completion.
The work includes close cooperation with Bank of Cyprus Legal Department regarding provision of documents needed for registration of the transfer of credit facilities and respectively of securities thereto. Knowledge of EU legislation and resolutions of the EU Council and Commission as well the practical implications of the latter were at place as well.