site.btaPreparations for Euro Changeover Push Up Bulgarian National Bank's Operating Expenditure in 2023

The operating expenditure of the Bulgarian National Bank (BNB) in 2023 was BGN 265,727,000, up by BGN 124,789,000 (88.5%) from 2022, including BGN 109,673,000 for the preparations to introduce the euro, the BNB said.

The expenditure on the preparations for the euro changeover are the combined result of the increase in spending on currency circulation, staff, external services, depreciation and other administrative expenses, etc.

The currency circulation costs of slightly over BGN 125 million, including BGN 97,272,000 planned for the preparations for the euro changeover, account for 47.1% of the BNB's total expenditure.

Expenditure on new banknotes was projected at nearly BGN 8.1 million, down by 21.2% from 2022. The planned expenditure is for printing 50 million 50-lev banknotes.

At over BGN 108.6 million, minting costs increase by 402.4% compared with 2022. They include BGN 101.6 million for circulating coins (1,357.5% more than in 2022) and over BGN 7 million for minting commemorative coins.

In the context of the preparations for the introduction of the euro as legal tender, BGN 89.8 million was planned for the production of 780 million euro coins. As part of the BNB's issuance activity, BGN 140,000 was planned for the design of new coin issues in 2023, 57.3 % more than the funds approved for 2022, of which BGN 41,000 was planned for the design of the national side of euro coins.

Expenditure on external services was planned at BGN 32.9 million, 12.4% of the Bank's operating expenditure, up by 19.3% from the approved budget for 2022. That expenditure included BGN 1.3 million for preparations for the euro changeover.

At BGN 7,859,000, software maintenance subscriptions increased by BGN 1,233,000 (18.6%) compared with the expenditure approved for 2022.

Expenditure under contracts with the Interior Ministry was set at BGN 5.6 million, 25.3% more than in 2022. BGN 900,000 more was allocated for security services in connection with the introduction of the euro.

The cost of equipment maintenance subscriptions was projected at over BGN 3 million, BGN 179,000 more than in 2022.

Payroll expenditure was set at nearly BGN 59.9 million, up by BGN 10,768,000 from 2022. BGN 5.1 million was allocated for a 14% pay rise of all staff members and over BGN 2.4 million was planned for career development.

The monthly salaries of the BNB Governing Council in 2023 were as follows: the Governor earned BGN 23,036, each of the three Deputy Governors earned BGN 19,745, and the other members earned BGN 6,582 each. The average monthly salary of the managerial staff was BGN 8,840. Experts earned monthly salaries of BGN 4,093 on average.