Bulgaria’s adoption of the euro is a significant step that will bring both opportunities and the need for adaptation for businesses and every citizen. Let’s look at the most important aspects of this change.
Stronger Economy and New Opportunities
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Attractiveness for Investments: Bulgaria is expected to become more attractive to foreign investors, which benefits all sectors, with a special emphasis on tourism. This means more jobs and economic growth.
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Greater Security: As part of the Eurozone, our country will enjoy greater economic and financial protection.
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Economic Stimulus: Part of the foreign exchange reserves of the Bulgarian National Bank (BNB) can be used to stimulate lending and investment. This will support investments in public infrastructure and boost economic activity.
For Businesses: New Rules and Facilitations
Dual Price Display (Dual Circulations Period):
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When: It starts one month after the date the EU Council Decision on the adoption of the euro enters into force and continues until 12 months after the euro introduction date.
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What: Prices of goods and services offered to consumers (individuals) must be clearly, legibly, and in the same font size displayed in both Leva and Euro. This rule does not apply to transactions between legal entities (B2B) and documents such as invoices and their notices.
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Fiscal Receipts: The total final amount on the cash register receipt must be indicated in both currencies (starting approximately 4 months before the euro introduction date and throughout the following year).
Conversion and Price Rounding:
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The price in Leva is divided by the full numerical value of the official exchange rate (with all five digits after the decimal point).
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The resulting Euro amount is rounded to the second decimal place by looking at the third digit: if it is less than 5, the second digit remains the same; if it is 5 or greater, the second digit is increased by one.
Contracts:
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The introduction of the euro will not affect the validity of existing contracts. All values in Leva will be considered values in Euro at the official exchange rate and rounding rules. The change does not grant the right to unilaterally modify or terminate a contract unless otherwise agreed.
Investment Funds and Stock Exchange Trading:
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During the dual display period, management companies, investment intermediaries, and trading venues will publish information on monetary values, balances, prices of financial instruments, and fees in both Leva and Euro.
Insurance Sector:
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Insurers and intermediaries will double-display (in Leva and Euro) the total amount of new contracts and the size of their premiums, as well as notices for due premiums on existing contracts during the dual display period.
For Citizens: Changes in Daily Life and Finances
Payments and Currency:
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Dual Circulation Period: Within one month from the date of the euro introduction, you will be able to pay in both Leva and Euro.
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After this month: The Lev ceases to be legal tender.
Exchange of Leva for Euro:
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BNB: Free of charge, in unlimited quantity, and with no time limit.
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Commercial Banks: Free of charge for the first 6 months after the euro introduction.
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Bulgarian Posts (EAD): Free of charge for the first 6 months, but only in settlements without bank offices.
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After 6 months: Banks and post offices may charge a fee for the exchange.
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After 12 months: Banks and post offices may discontinue the exchange service (BNB continues indefinitely).
Bank Accounts, Deposits, and Loans:
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Automatic Conversion: All accounts (current, deposit, savings) in Leva will be automatically and free of charge converted to Euro on the date of the euro introduction.
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ATM/POS Withdrawal: From the day the euro is introduced, you will only be able to withdraw Euro.
Interest Rates:
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Fixed Rates: Remain fixed, and the transition to the euro cannot lead to more unfavourable conditions.
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Variable Rates: Will be converted so that the interest payment in Euro is equivalent to the one in Leva as of the conversion date.
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Contracts with Banks: The introduction of the euro cannot be used as a basis for renegotiating clauses in existing contracts (including loans) in a way that puts customers at a more unfavourable position. This also applies to non-bank financial institutions.
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Information from Banks: During the dual display period, banks will provide information on account balances, transaction values, fees, and information on loans and deposits in both Leva and Euro.
Salaries, Pensions, and Social Benefits:
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They will be paid in Euro from the date of the adoption of the single currency.
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The conversion will be at the official exchange rate, and the amount will be rounded to the nearest euro cent in favour of the recipient (if the third digit after the decimal point is greater than zero, the second digit is increased by one).
Supplementary Pension Insurance:
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Pension insurance companies will update the information in the accounts and, during the dual display period, will show the available funds in Leva and Euro.
Key Takeaway for Everyone:
The introduction of the euro is a process that requires being informed. Follow the official information from the institutions to be prepared for all practical aspects of the change. Transparency in price recalculation and adherence to the rules will be essential for a smooth transition.
