Bulgaria is preparing to adopt the euro, having recently adopted a law on the currency shift. Some key legal provisions and changes will come into force on the date of the decision to change to the euro, such as:
- Automatic currency conversion
- Free monetary exchange
- Dual pricing
- Currency exchange at banks and post offices
- Dual circulation period
- Interest rate adjustments
On the day the euro is introduced in Bulgaria, all accounts — whether checking, savings, deposit, or other types at local banks — will be automatically and free of charge converted into euros at the official exchange rate. From that day forward, account holders will only be able to withdraw euros from their accounts, regardless of whether the withdrawal is made through ATMs, POS terminals, or at a bank or payment institution's office. Additionally, payments for wages, benefits, monetary and social assistance, and pensions will be made in euros starting from the euro adoption date.
From the day the euro is introduced, the Bulgarian National Bank will exchange banknotes and coins from leva to euros free of charge, in unlimited quantities, and without time restrictions.
Prices for goods and services will be displayed in both leva and euros from the first month after the Council's decision to adopt the euro until 12 months following the euro's introduction in Bulgaria. The law mandates that these dual prices be clearly, legibly, unambiguously, and easily understandable, with the same font size, so as not to mislead consumers. The final amount to be paid by the consumer must also be presented in both currencies on the issued fiscal or system receipt.
During the first six months after the introduction of the euro, banknotes and coins can be exchanged free of charge from leva to euros at banks and at some branches of "Bulgarian Posts" EAD.
For one month after Bulgaria's official entry into the eurozone, there will be a dual circulation period during which payments can be made in either leva or euros. During this time, merchants are required to provide change in euros unless they do not have sufficient cash on hand. After this period, the lev will cease to be legal tender.
For variable-rate credit agreements, the new interest rate cannot exceed the rate applicable before the euro's introduction. In the case of fixed-rate credit agreements, the interest rate will remain as agreed upon before the euro's introduction.
These measures are designed to ensure a smooth transition to the euro and to provide clear guidelines for both consumers and businesses during this significant change. Should you have any questions or need assistance, Penev LLP stands ready to support your business through this transition.
