2024-07-29 17:38:24
As expected, GERB, PP-DB and DPS adopted a law to introduce the euro, “Vazrazhdane” – opposed, and ITN abstained
They allowed 3 days for proposals between the two readings of the law
Former finance minister Asen Vasilev “bet an MP’s salary” that we will cover the price criterion as early as autumn
With 114 votes “for”, 37 – “against” and 11 – “abstentions”, the parliament adopted the law on the introduction of the euro in the first reading. It received the support of GERB-SDS, PP-DB and DPS. It was expected that “Revival” was against “, 2 independents and 3 from BSP, and ITN abstained.
From “Vazrazhdane” they asked for a longer term for double indication of prices – in BGN and EUR. Petar Petrov expressed his concern that during the exchange, data will be collected on the funds that citizens will exchange from BGN to EUR, and they will be provided of the NRA.
The former Finance Minister Asen Vassilev from the PPDB replied that the NRA currently has access to this data with a court decision and will not expect such information during the exchange. “All funds that are sitting in jars and on sofas in the state are declared only if they are above the threshold that is set according to the Anti-Money Laundering Measures Act. Those who will be affected are those who have particularly large sums and cannot prove their origin,” Vassilev said. He was adamant that we are expected to meet the inflation criterion by September and request a new accession report And he even bet “a parliamentary salary that we will get one, as well as a date for next year”.
The Parliament also adopted a decision, together with the law, with which it obliges the official or any cabinet within 14 days after meeting the price criterion to request such a report and to set the date of July 1, 2025 for the start of the euro in our country.
What is written in the law? On the date of the introduction of the euro in Bulgaria, all accounts – checking, deposit, savings and others in local banks will be converted into euros once, automatically and free of charge at the official exchange rate.
The BNB will exchange banknotes and coins from leva to euros free of charge, in an unlimited quantity and without time limits, at the official exchange rate from the day of the introduction of the European currency.
It is foreseen that the new interest rate on loan contracts with a variable interest rate cannot be higher than the amount of the interest rate on them before the date of introduction of the euro. In the case of a loan agreement with a fixed interest rate at the date of introduction of the euro, the interest rate will remain as it was agreed before the date of introduction of the euro.
The prices of goods and services will be indicated simultaneously in BGN and EUR from the first month after the decision on our acceptance into the Eurozone and up to a year after its introduction in Bulgaria.
The official exchange rate for exchanging leva for euro is also regulated, which is fixed at 1.95583 leva for euro.
In a period of one year from the date of introduction of the euro, every person has the right to receive information about the monetary values in BGN of his property rights and obligations as of the date of conversion. The persons who carried out currency conversion in accordance with this law shall provide the information free of charge within 7 days of the request.
On the date of the introduction of the euro in Bulgaria, all accounts – checking, deposit, savings and others in local banks will be converted into euros once, automatically and free of charge at the official exchange rate.
From the day of the introduction of the euro, account holders will be able to withdraw from them only euros, regardless of whether the withdrawal will be made through an ATM or at the office of a bank, payment institution, etc. From the same date, it is planned that the payment of salaries, pensions, benefits, monetary and social benefits will be made in euros.
The use of both currencies at the same time will only happen within the first month of the introduction of the euro, and within 6 months, banknotes and coins will be able to be exchanged free of charge from leva to euro in banks and some post offices. For amounts over BGN 30,000 per transaction, credit institutions will exchange banknotes and coins from BGN into euros free of charge after a prior request of 3 working days.
The BNB will exchange banknotes and coins from leva to euros free of charge, in an unlimited quantity and without time limits, at the official exchange rate from the day of the introduction of the European currency.
It is foreseen that the new interest rate on loan contracts with a variable interest rate cannot be higher than the amount of the interest rate on them before the date of introduction of the euro. In the case of a loan agreement with a fixed interest rate at the date of introduction of the euro, the interest rate will remain as it was agreed before the date of introduction of the euro.
It is explicitly stated that the introduction of the euro cannot lead to an increase in the prices of goods and services, except when this is justified by objective economic factors.
The period of double indication of the prices of goods and services in euros and in levs begins one month after the adoption of the euro and ends 12 months after the date of introduction of the euro in Bulgaria. The prices of all goods and services offered to users are indicated in euros and in BGN for the specified period.
The two prices must be written clearly, legibly and unambiguously so as not to mislead consumers. The receipt must also show the amount paid in both currencies.
During the one-month period with dual leva and euro circulation, people will be able to pay in both currencies, and merchants will be obliged to return change in euros unless they have sufficient current availability. After the expiration of this period, the lev will cease to be legal tender. During the period of double circulation, merchants may not accept more than 50 leva coins, including pennies, in one transaction.
In the case of commercial messages and advertising in audio and video format, which aim to promote the sale of goods and services, prices may be presented verbally only in BGN until the date of introduction of the euro, and after that, only in euros.