site.btaBanks Association Board Chair: Sooner Bulgaria Joins Euro Zone, Faster Bulgarian Economy Will Grow

The sooner Bulgaria joins the euro zone, the faster its economy will grow and the more predictable and visible it will be for its European partners, said Diana Miteva, Chair of the Board of the Association of Banks in Bulgaria (ABB) and CEO of DSK Bank. She was among the speakers at a round table where experts and financiers discussed the readiness of the Bulgarian economy for the euro area.

The forum was organized by the Centre for Development and Policies.

Miteva noted that the banks have been under the regulation of the European Central Bank for two years and understand how difficult it can be to prove that Bulgaria belongs in the EU. The way to make this easier for Bulgarian companies and businesses is only one: to join the euro zone, Miteva said.

She pointed out that the Association of Banks has supported the process from the moment the decision was made for Bulgaria's accession to the euro zone from January 1, 2024. "The date of 1 January 2024 is approaching faster than we can fathom. This is a process, a transition to a completely new legal tender in Bulgaria, this is a profound transformation of the entire macroeconomy," she said. Miteva added that this country has the big advantage of having had its national currency pegged to the German mark - and then the euro - since 1997.

"In their mind Bulgarians quickly convert the lev into euro - this is not a problem for them - but they cannot imagine what a change of legal tender in a country is and how complicated this process could be," Miteva noted.

She said that most banks have started projects and technical preparations for the changeover.

"We took Croatia's law on the euro changeover, we managed to study the pros and cons on the way to the euro in Croatia, and we proposed to the institutions in our country to use this experience, in order not to repeat the mistakes and to make the transition easier and more transparent," Miteva said.