site.btaCentral Bank Governor Warns that Not Adopting BNB Bill Would Block Bulgaria’s Euro Area Entry

If the draft law on the Bulgarian National Bank (BNB) is not adopted, it means that the BNB does not meet the requirements for legal convergence with the Eurosystem, which in turn automatically blocks Bulgaria's eurozone accession process, Central Bank Governor Dimitar Radev said in Parliament.

According to him, there are political and ideological reasons for some to be against the process, as well as political and ideological reasons for some to be for the process.

At Thursday's plenary session, lawmakers began considering the BNB bill on first reading. The debate is expected to continue on Friday.

The draft law aims to ensure the legal integration of the Bulgarian central bank into the Eurosystem when the euro is introduced as the country's currency. It is envisaged that the new BNB law will enter into force on the day specified in a decision of the Council of the European Union on Bulgaria's adoption of the euro.

Dimitar Radev pointed out that the draft law was developed by the BNB and has been ready since June last year, after which it was subject to consultations, including with the European Central Bank and the European Commission.

Responding to a question from Georgi Svilenski (BSP for Bulgaria) about a report on the effects of adopting the euro, Radev explained that the bill is accompanied by a preliminary impact assessment report, which is required for its submission to Parliament. What is clearly stated in this report is that postponing the consideration of the draft means two things - failure to meet the requirements for legal convergence and blocking the process of joining the euro area, the BNB Governor said.

Radev urged against attempts to involve the BNB in political plots.