site.btaBulgarian Parliament Adopts Bill of Euro Changeover on First Reading

Parliament Friday adopted at first reading a bill on the introduction of the euro in Bulgaria with 114 votes in favour, 37 against and 11 abstentions. It was supported by GERB-UDF, Continue the Change – Democratic Bulgaria, Movement for Rights and Freedoms and ten independent MPs. Vazrazhdane, BSP for Bulgaria and two independent MPs voted against. There Is Such a People abstained.

Earlier on Friday, Parliament adopted a decision to accelerate and complete the process of practical preparations for the euro changeover in Bulgaria with 118 votes in favour, 44 against and 13 abstentions.

The bill defines key rules for the changeover, for conversion and rounding, also specific rounding rules in relation to the payment of wages, benefits, cash allowances and pensions under the Social Security and Welfare Code.

The bill set up a period during which prices and other monetary amounts to be paid, credited and debited, will be displayed in both currencies. This obligation shall start one month after the date of entry into force of the Decision of the EU Council on the adoption by Bulgaria of the euro and shall remain in force for one year after the introduction of the euro.

A so-called “dual circulation period” will also be introduced. Within one month from the date of the introduction of the euro, the lev and the euro will both be legal currencies. After this period, the lev will drop out of circulation.

The Bulgarian National Bank (BNB) is to exchange banknotes and coins from lev to euro free of charge, in unlimited quantity and without time limit at the official exchange rate. During the first six months after the introduction of the euro, banknotes and coins can also be exchanged free of charge from leva into euro at banks. For the same period, Bulgarian Post EAD will exchange banknotes and coins free of charge from leva into euro in the settlements where there are no offices or branches of a credit institution.

All bank accounts will be converted free of charge from the date of the euro introduction. Account holders will only be able to withdraw in euro.

The bill does not set the specific date of the euro's introduction or the official exchange rate of the leva to the euro. The date and the exchange rate will be set by the EU Council with a unanimous decision of the member states, which official currency is euro, said a reported of the Committee on Budget and Finance. 

The deadline for proposals between the first and second reading of the bill was shortened to three days. That was opposed by Vazrazhdane.