The pandemic has activated Art. 451 of the Civil Code: how this rule saves the business

Last year was a difficult one for businesses, because of COVID-19 and the anti-COVID measures imposed by the authorities. Some businesses went bankrupt, others had to downsize, and still others saw their profits drop significantly. In this situation, it is particularly difficult to pay creditors on liabilities. Not all banks are ready to cooperate with their borrowers. The only hope entrepreneurs can set is on courts which are asked to assess the situation as a «material change of circumstances». Experts say that each of such cases should be evaluated individually.

In this context, Artur Zurabyan, ART DE LEX Partner, points out that Trust's position in the disputes under discussion is quite passive: «The bank has not actually challenged or tried to give counter-calculations about the validity of the interest rate of 1%» - more details in the article.