Loan Agreements

The introduction of the rules of the market economy and free enterprise has increased the need for well-structured and timely financing. The pace and scale of lending to businesses are used to gauge economic growth.

The trust and confidence in lending institutions have wavered over the years and it becomes particularly important against the background of the volatile economic situation in Bulgaria and also in the European Union as a whole to ensure careful, accurate and professional wording of loan agreement clauses. This is a rather sensitive process given the increased conservatism of lenders, the growing business-to-business indebtedness, and the amount of bad loans.

The smart employment of legal forms in lending has turned into a necessity matched with professional negotiating skills, while sustaining the freedom in negotiations within the mandatory regulatory framework.

The PM&P team has prepared and consulted a huge number of financing arrangements over the years, providing services to lenders (banks, financial institutions, consumer loan companies, export credit agencies), as well as borrowers and third party obligors. In this connection, we prepare the whole set of loan documents, together with the relevant corporate decisions, valid securities, statements to the Bulgarian National Bank, etc. This comprehensive approach to the preparation of loan projects enables us to undertake timely and effective legal action to defend the interests of our clients in cases of deviation from the normal course of the relationships under the loan agreement.


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“Penkov, Markov & Partners has experience assisting both banks and local companies on cross-border financings.“