Bulgaria’s accession to the eurozone is a long-awaited process that will bring significant benefits to the country’s economy. This transition will support economic development, accelerate reforms and increase the well-being of society.
Citizens and businesses will feel the advantages not only through reduced transaction costs, but also through the creation of a more favourable investment environment. It is also expected that domestic and foreign investments will be stimulated, which will further accelerate employment and support economic growth. These processes would also contribute to faster convergence with other European countries.
The Association of Banks in Bulgaria (ABB) confirms its commitment to supporting the process of implementing the technical requirements in partnership with all banks in Bulgaria, institutions and other stakeholders. For the implementation of all necessary processes, ABB aims to be the trusted partner that both banks and state institutions can rely on. In this regard, the role of the Association and its members in joining the eurozone is linked to another strategic priority – financial literacy. The banking sector is emerging as the main unit that will inform citizens and businesses about the changes related to the introduction of the euro. The branches and their employees will be the first line to meet customers’ questions related to the topic and will be constantly ready to answer them in the most comprehensive and informative way possible. In fulfilling this function, banks will contribute to increasing the financial literacy of society by highlighting the undeniable advantages of the euro zone and the benefits of joining it.
There are several main areas that will be the focus of this process:
Dual circulation: during the first month from the date of the introduction of the European currency in the Republic of Bulgaria, the lev and the euro will be in circulation simultaneously, and both currencies will have the status of legal means of payment. After the expiration of this one month, the euro will remain the only legal tender in Bulgaria.
Dual display: the period of dual indication of the prices of goods and services in euros and levs begins one month after the adoption of the euro and ends 12 months after the date of the introduction of the euro in Bulgaria.
Seamless exchange of available money in circulation: Banking institutions will ensure that every citizen and business will have easy and quick access to the exchange of available money in euros, without unnecessary delays, in order to ensure the normal functioning of the economy.
Automatic currency conversion: the conversion of bank accounts from levs to euros will be carried out on the day of the introduction of the euro. All funds in levs in current, deposit, savings and other accounts in local banks will be converted into euros free of charge on the day of the introduction of the euro.
GENERAL QUESTIONS
What will be the exchange rate when introducing the euro?
Since 1997, a currency board has been operating in Bulgaria. Since 1999, the exchange rate has been fixed at BGN 1.95583 per EUR 1.
According to a decision of the National Assembly in 2022, the Republic of Bulgaria will introduce the euro as its official currency only if this fixed exchange rate is maintained.
It is not possible to impose an exchange rate that our country does not agree with, since the decision is made unanimously and Bulgaria participates in it.
Will prices double upon Bulgaria`s entry into the eurozone – for example, if a loaf of bread costs 2 leva, will it cost 2 euros?
Absolutely not. All values will be converted at the official exchange rate without rounding. This is one of the reasons why a period of dual display of prices is foreseen. They will be presented both in BGN and in EUR. This process will start one month after the date of entry into force of the Decision on the adoption of the euro and will continue for 12 months after the date of introduction of the euro.
The same applies to your income. If your salary is currently BGN 2,000 , it will not become EUR 2,000, but will be converted. This way, the ratio between income and prices will remain the same.
How will the final price be announced in the fiscal/system receipt?
During the period of dual display of prices for goods and services, the total final amount paid by the consumer shall be announced in the issued fiscal/system receipt or in another document registering the payment, issued instead of a fiscal/system receipt, in euros and in levs, together with the official exchange rate of the lev to the euro.
Will inflation increase upon joining the eurozone?
According to the BNB, the immediate effect of joining the eurozone on price levels will be in the range of 0.3% increase. The last country to join the eurozone was Croatia. This happened in January 2023. Inflation in Croatia in that month was 0.2%. According to BNB data, the effect of the transition to the euro on the overall inflation rate in Slovenia is 0.3, in Slovakia – 0.15, in Estonia – 0.3, in Latvia – 0.2, and in Lithuania – 0.11 percentage points.
BANK ACCOUNTS
Should customers close their lev accounts and open new euro accounts after the euro adoption date?
Customers do not need to close their existing lev accounts and open euro accounts after the euro adoption date, because all lev bank accounts will be automatically and free of charge converted from levs to euros at the official fixed exchange rate.
How will the balances on lev accounts be converted after the euro is adopted as the official means of payment in Bulgaria?
The balances on all lev bank accounts will be automatically and free of charge converted into euros from the date of the country’s accession to the euro area at the officially announced exchange rate.
Is there a risk that my funds will disappear during automatic currency conversion?
Banks have been working towards joining the eurozone since 2022. All systems are prepared and tested so that your funds are safe and protected, both from technical errors and malicious actions. It is not possible to lose your funds during the automatic currency conversion process.
Will the international bank account number (IBAN) on leva accounts change after the adoption of the euro as an official means of payment?
No, the international bank account number (IBAN) of clients on leva accounts will remain the same.
If I have two bank accounts before the euro introduction date – one euro account and one lev account, what will happen to them after the euro is introduced as the official currency?
After the euro is introduced as the official means of payment, your lev account will be automatically and free of charge converted by the bank into euros at the official exchange rate, i.e. after the euro introduction date you will have two euro accounts. Within two months from the euro introduction date, you may request the closure of one payment account and the transfer of the positive balance on it to the other, if there are no encumbrances, garnishments or other legal restrictions imposed on your account, while maintaining the terms of the payment account to which the funds are transferred. Banks will not charge fees and commissions for these operations. If the payment account that is being closed has a debit balance or you have a credit card issued to it, the relevant obligation must be repaid before the account is closed.
How will the rounding of the received amount in euros be performed when automatically converting leva accounts into euros?
The balance (the amount you have) on your account will be converted by dividing it by the amount on the account at the official exchange rate, with the resulting amount rounded to the second decimal place based on the third decimal place in accordance with the following mathematical rounding rule:
1. when the third decimal place is less than five, the second decimal place remains unchanged;
2. when the third decimal place is equal to or greater than five, the second decimal place is increased by one unit.
If I have an agreed limit on my account, such as a daily withdrawal limit, transfer limit, credit card limit, etc., how will it change when the euro is introduced?
If the account has an agreed limit, such as a daily withdrawal limit, transfer limit, credit card limit, etc., it will be converted at the official fixed exchange rate in accordance with the conversion and rounding requirements described above.
CREDITS
If the interest rate on the loan I have taken from a bank is fixed, for example 5%, will this interest rate change from the date of the introduction of the euro?
If, on the date of the introduction of the euro, you have an agreed fixed interest rate on the loan, for example 5%, the interest rate remains as it was agreed before the date of the introduction of the euro.
If the interest rate on the loan I have taken from a bank is variable, for example it is formed as a benchmark or index/indicator published by the BNB or NSI plus a premium, will this interest rate change from the date of the introduction of the euro?
If, on the date of the introduction of the euro, you have a variable interest rate and due to the introduction of the euro, the calculation of the benchmark/index/indicator is discontinued, the new interest rate applicable to your loan cannot be higher than the interest rate before the date of the introduction of the euro.
How will the instalment on a loan agreed in levs change?
The instalment on a loan agreed in levs will be automatically converted into euros when applying the official fixed exchange rate and the currency conversion rules. The terms for paying the instalment on the loan agreed with the bank will not change. The fees that the client pays in connection with the loan granted to him will be automatically converted by the bank when applying the official exchange rate and the rounding rules.
What will happen to my residual obligation/residual principal on a loan that I agreed on in BGN before the date of the introduction of the euro?
The residual obligation/residual principal on a loan agreed in BGN will be automatically converted by the bank into EUR when applying the official exchange rate and the rounding rules.
The agreed terms on the loan – interest rate, maturity, repayment method and others – will not change after the introduction of the euro.
DEPOSITS AND INVESTMENTS
I have a one-month BGN term deposit in a bank, which bears interest at a rate of 0.5%. What will happen to my deposit after the euro adoption date?
From the euro adoption date, the balance of your one-month BGN term deposit will be automatically and free of charge converted into euros at the official exchange rate. The parameters of your term deposit (type of deposit, interest rate and term) will not change.
What is the maximum protection for deposits of citizens and companies that will be provided by the Bank Deposit Guarantee Fund /BDGF/ in the event of a bank failure?
The maximum amount of the deposit guarantee that the BDGF will provide to a client in the event of a bank failure after the euro adoption date is EUR 100,000. If the client had deposits in a currency other than BGN or EUR until the date of the introduction of the euro, for example US dollars or Swiss francs, the equivalent of the deposits in foreign currency in EUR will be recalculated. The additional guarantee, which is currently BGN 250,000 and is provided for certain types of deposits, will be equal to EUR 125,000.
What will be the maximum amount of compensation provided by the Investor Compensation Fund?
The compensation in the event of the bankruptcy of an investment intermediary, when it is unable to pay its obligations to its client, will be in the amount of 90% of the value of the client’s financial instruments, but not more than EUR 20,000.
EXCHANGE OF LEVS INTO EUROS AND DUAL CIRCULATION
Will I be able to pay with levs after the introduction of the euro?
For a period of one month from the date of the introduction of the euro in the country, lev banknotes and coins will be legal mean of payment alongside euro banknotes and coins. After this one-month period, in which both currencies are in circulation, you will not be able to purchase goods or pay for services with lev coins and banknotes.
During the period of dual circulation of the lev and the euro, will I be able to make bank orders in levs?
During the period of dual circulation, payment orders through banks would only be made in EUR. Payments in BGN systems (BISERA 6, RINGS) will cease to function from the date of the introduction of the euro.
What will happen to a payment in levs initiated by me before the date of the introduction of the euro?
If you initiated a payment in BGN before the euro adoption date, it will be executed in euros and will be completed in euros on or after the euro adoption date.
During the dual circulation period, will I be able to pay my public receivables obligations /taxes, state fees, etc./ in levs?
You can pay public receivables obligations only in cash, and only in cases where this is possible. If payment must be made by a bank transfer, it can only be made in EUR. From the date of the introduction of the euro, the BGN payment systems /RINGS, BISERA 6/ will cease their activities.
Can I perform an over-the-counter transaction in levs during the dual circulation period?
Yes, during the dual circulation period, you can perform an over-the-counter transaction in levs at a bank. For example, during the dual circulation period, you can pay your obligation to the budget at a cash desk at a bank, i.e. make a cash transfer in levs.
If during the transaction performed at a bank counter, the employee needs to give you change, the change must be in euro banknotes and euro coins.
During the period of dual circulation of the two currencies – levs and euros, can I withdraw levs from an ATM /ATM device/?
During the one-month period of dual circulation of BGN and EUR, you cannot withdraw levs from an ATM /ATM device/.
From the date of the introduction of the euro, when withdrawing cash through self-service machines, including ATM terminal devices, only euro banknotes will be distributed.
Where can I exchange my levs for euros after the introduction of the euro as the official means of payment in the Republic of Bulgaria?
You will be able to exchange BGN for EUR at the BNB, at banks or at Bulgarian Posts EAD.
In the offices of Bulgarian Posts EAD, it will be possible to exchange BGN for EUR only in those villages where there are no bank branches.
If it turns out that I have damaged lev banknotes and coins that I want to exchange for euros, what should I do?
The institution that exchanges damaged BGN banknotes and coins is the BNB. The exchange is carried out at the official exchange rate according to the procedure specified in a regulation by the BNB.
Will the exchange of levs into euros be free?
There are no fees for exchanging BGN into EUR from banks and Bulgarian Posts EAD during the first 6 months from the date of the introduction of the euro. The BNB will exchange at the official rate free of charge in unlimited quantities and without time limits.
If you wish to exchange an amount over BGN 10 000 into EUR, you will be able to do so only at the BNB or at a bank. For amounts over BGN 30 000 per transaction, a prior request of 3 business days is required.
At Bulgarian Posts EAD, you can exchange up to BGN 10 000, and for amounts over BGN 1 000, a prior request of 3 to 5 business days is required.
The exchange of leva banknotes and coins into euros is carried out in compliance with the requirements of the Anti-Money Laundering Measures Act and the Anti-Terrorism Financing Measures Act.
What fee will be applied after the 6-month period in which banks and Bulgarian Posts EAD will exchange BGN banknotes and coins into EUR free of charge?
After the 6-month period of free exchange, it is possible that a fee will be introduced by banks or Bulgarian Posts EAD. The amount of the exchange fee will be announced in due time. Even after the 6-month period has expired, you will be able to exchange your BGN into EUR at the Bulgarian National Bank for free.
If, after the introduction of the euro as an official means of payment, I want to deposit BGN into a euro account at a bank, will I be charged by the bank for the conversion of the BGN into EUR?
During the 6-month free currency conversion period after the date of introduction of the euro as the official means of payment, banks will not charge fees for converting BGN into EUR when you deposit levs into your euro account. After the 6-month free currency conversion period, the Euro Introduction Act gives banks the right to introduce a currency conversion fee when depositing BGN into a euro account.
Can banks refuse to exchange BGN into EUR?
Until 12 months have passed since the date of introduction of the euro as the official means of payment, banks are not entitled to refuse to exchange BGN into EUR. After this period, each bank will decide whether to continue providing this service. The BNB will exchange BGN banknotes and coins into EUR for an unlimited period.
DUAL CIRCULATION IN BANKS
Which fees and commissions will banks display in levs and in euros?
Banks are obliged to dually indicate the Fees and Commissions Tariffs for the financial services they provide. Banks will disclose this information in their offices and on their websites.
For what period of time will banks dually disclose the Fees and Commissions Tariffs for the services they provide in EUR and in BGN?
The period of dual disclosure of the Fees and Commissions Tariffs for the services provided by banks will begin within a month after the date of entry into force of the decision to introduce the euro as the official means of payment in the country and will continue for 12 months after the date of introduction of the euro as the official currency.
For example, if a decision is announced on June 1 to introduce the euro as the official means of payment in the Republic of Bulgaria from 01.01.2026, banks will begin double disclosure of the Tariffs for fees and commissions from July 1, 2025 and this disclosure will continue until 31.12.2026.
What other information must banks disclose during the dual disclosure period?
Banks are required to disclose in BGN and in EUR information on:
- the opening and closing balances on payment accounts in the statements provided on paper or other durable medium, on all BGN accounts opened until the date of the euro introduction;
- the value of the payment transaction on all BGN accounts opened until the date of the euro introduction;
- all fees and commissions related to the payment transaction payable by the payer;
- all fees and commissions related to the payment transaction payable by the payee;
- the value of the payment transaction and the remaining balance on the account when withdrawing cash from an ATM;
This information will be disclosed dually only for BGN accounts opened until the date of the euro introduction. If you have accounts opened in EUR, USD or another currency, banks will not provide dual disclosure of the above information.
What other information must banks provide to their customers during the dual display period?
If the customer has a consumer and/or housing loan granted in BGN until the date of introduction of the euro as an official means of payment, the bank is not obliged, but upon request by the customer must provide the following information in EUR and in BGN during the dual display period:
- the balance on the loan;
- the amount of the loan instalments due;
- the payments made on principal, interest and other payments related to the loan.
This information is provided free of charge to customers during the dual display period.
If you have a loan in EUR, USD or other currency, the bank is not obliged to provide you with the above-mentioned information related to your loan upon request free of charge.
Upon request by the customer, the bank must provide him with information free of charge about the accrued interest in BGN and in EUR on a deposit account opened in BGN until the date of introduction of the euro as an official means of payment. If you have an open deposit account in EUR, USD or other currency, banks are not obliged to provide you with this information free of charge if you ask them for it.
EURO SUPPLY BEFORE THE INTRODUCTION DATE
How can my business obtain euro coins and banknotes before the euro introduction date?
Until the euro introduction date, the supply of euro banknotes and coins to traders is carried out by banks, and this supply is made on the basis of contracts concluded between banks and traders. Euro banknotes and coins received by traders cannot be used until the euro introduction date. You can contact your servicing bank and clarify with them how you can obtain euro banknotes and coins before the euro introduction date in order to secure your business after the euro introduction.
How can I get starter sets of EUR coins with Bulgarian national side before the euro changeover date?
Until the euro changeover date, banks sell starter sets of EUR coins with Bulgarian national side to individuals and traders. Bulgarian post offices sell starter sets of euro coins with Bulgarian national side only to individuals. EUR coins received with the purchased starter sets by individuals and traders cannot be used until the euro changeover date./p>
CONTRACTS AND LEGAL DOCUMENTS IN LEVA
What will happen to legal documents that specify amounts in levs?
All contracts that specify amounts in levs remain valid and do not need to be changed or new agreements concluded. Amounts specified in BGN are considered to be amounts in EUR, with BGN amounts being converted using the fixed official exchange rate in accordance with rounding rules.
Is it necessary to conclude amendments to contracts for existing services agreed in BGN before the date of introduction of the euro?
No. The introduction of the euro does not affect the validity of existing legal contracts with a stated currency in BGN.
You can learn more about the euro and the process of its introduction as a national currency on the specially created website evroto.bg
