Application of the Moratorium Over the Payment of Loans in Connection with the COVID-19 Pandemic and its Impact on the National Security in the Republic of Bulgaria

Abstract

The activities of banking institutions regarding crediting are undoubtedly among the most significant sources of free capital for the functioning of the market economy of the EU Member States. Therefore, crediting represents one of the most common forms of business financing and the accomplishment of future investment intentions. This mechanism of the credit portfolio serves an extremely wide range of activities related to the specifics of the respective business. Of course, loans are not only used by legal entities engaged in business activities, but they are also engaged to a large extent in the participation of the individuals in the turnover. The provided Moratorium over the payment of loans in the EU is a particularly important act that seeks to bring stability and predictability to the banking system and the public, both for legal entities engaged in business activities, as well as for individuals who, as a result of the imposed measures to overcome the COVID-19 pandemic, cannot carry on with their usual activities. The purpose of the present article is to analyse the effect of the moratorium upon the payment of loans and its significance for ensuring the national security in the Republic of Bulgaria in the context of overcoming the negative effects of the pandemic on the EU and the Bulgarian economy.