In a statement published in the bulletin of the Association of Commercial Banks, Governor of the Bulgarian National Bank (BNB) Dimitar Radev stressed that bank accounts will automatically convert from BGN to EUR on the day of the introduction of the single European currency
In a statement published in the bulletin of the Association of Commercial Banks, Governor of the Bulgarian National Bank (BNB) Dimitar Radev stressed that bank accounts will automatically convert from BGN to EUR on the day of the introduction of the single European currency (Image Courtesy-Google)

In a statement published in the bulletin of the Association of Commercial Banks, Governor of the Bulgarian National Bank (BNB) Dimitar Radev stressed that bank accounts will automatically convert from BGN to EUR on the day of the introduction of the single European currency.

The document clearly states that leva-based monies on current, deposit, savings and other accounts with banks and other payment service providers would be converted into euros at no cost.

The publication of Governor Dimitar Radev makes it apparent that the BNB will begin supplying the banks with euro banknotes and euro coins with a Bulgarian national side two weeks before the date of the adoption of the euro.

Banks will begin distributing euro banknotes and euro coins with the Bulgarian national side (without charge) to traders and “Bulgarian Posts” EAD offices during this time, a process known as secondary pre-supply.

Following the euro launch, the banks (with “Bulgarian Posts” EAD) will unavoidably offer a free exchange of banknotes and coins from leva to euro for the first six months.

Banks will be required to continue converting banknotes and coins from leva to euro after the initial six to twelve months of the euro’s adoption, and they will now be permitted to charge a fee for this service.

After a year after the introduction of the euro, the service for changing banknotes and coins from leva to euro will once again be offered by banks at their discretion, with the potential of charging a fee for this service.

The BNB will continue to provide free and unlimited currency conversion from leva to euros. Dimitar Radev identifies the political climate as the major danger leading up to the adoption of the euro, which is scheduled to happen in 2024.

The implementation of the euro has also been emphasised as a top priority by Rositsa Velkova, the acting minister of finance, who also published a piece in the banking bulletin. The Ministry and the BNB collaborate closely.