By April, Bulgaria is expected to introduce the ERM II exchange rate mechanism, known as the Eurozone Waiting Room. At the same time, our country should closely cooperate with unified banking supervision. These are the two most important steps towards the introduction of Bulgaria's euro, which will be symbolic for 2020. According to the Minister of Finance, it is quite realistic that in three years we will begin to pay the euro.
To join ERM II, Bulgaria must meet all the criteria of the Maastricht Treaty, which sets the limits of debt and deficit for each country. There is also a criterion associated with inflation. Our country has been answering them for years. Finance Minister Vladislav Goranov explained to the BNR:
“The only condition that remains is the implementation of plans to increase the capital buffers of the two Bulgarian banks.”
It is expected that measures will be implemented, including by raising capital through the stock market. They were prescribed by the European Central Bank, which last year checked the quality of its assets and conducted stress testing at six banks. Peter Andronov, chairman of the banking association, said:
“Bulgarian banks presented themselves with dignity. The audit raised and raised issues for resolution, but the good news is that these issues are the responsibility of the institutions. ”
Since the Bulgarian lev is pegged to the euro through the currency board, the most important function is to stay in the so-called. The Eurozone waiting room is full: “For us, this is a religious issue, so there is nothing we could say with more certainty than this: no changes in the monetary regime. The only way out of what we currently have as a fixed exchange rate regime will be the adoption of the euro, "said BNB Governor Dimitar Radev.
Bulgaria is the first country to join ERM II and be connected by a single banking supervision mechanism. He was also represented by Croatia, which also announced its intention to join. For approval, all Member States must have the approval of the exchange rate mechanism, i.e. Eurozone countries and Denmark, as well as the European Central Bank.