site.bta"Bulgaria's Banking System Is Already in Eurozone," Central Bank Deputy Governor Says

"If there is any part of the Bulgarian economy as a whole, if there is any system that is already in the eurozone in terms of requirements, regulations, good business practices and behaviour, this is the banking system," Bulgarian National Bank (BNB) Deputy Governor Petar Chobanov said here on Wednesday, attributing this to the fact that Bulgaria has been part of the Banking Union since 2020.

Chobanov spoke at a Conference titled "Together towards Success: Stable Financial Ecosystem and Bulgaria's Progress to the Eurozone," organized by the Association of Banks in Bulgaria (ABB).

The forum, attended by bank and finance executives and economic analysts, was intended to provoke a discussion on the macroeconomic situation in Bulgaria, the future of the banking sector and the ABB's strategic priorities in 2024.

Chobanov noted that the BNB and the ABB are in effective and successful communication, each within its role: the central bank as a regulator and the ABB as a community that is supposed to maintain the stability and meet all eurozone accession criteria and a vision on the economic benefits that the introduction of the euro in Bulgaria. 

The central bank Deputy Governor said that Bulgaria's banking system is registering growth and stability and projects an optimum risk management. "Even though we set most rigorous requirements for the buffers, the banking system is showing understanding in this respect because the banks realize that this is useful in the long term," Chobanov pointed out.

"Regarding the cycle of rising interest rates by the European Central Bank, our banking system is making the smoothest transition: our interest rates did not rise too steeply and prevented jolts," Chobanov said further. "As a central bank, we have always insisted on stability, and this is expressed in the highest capital requirements to the banks themselves," he added.

Chobanov commented that when there is political turmoil in a country, this calls into question its ability to carry on along the path it has taken. "This applies above all the entry into the eurozone, and January 1, 2025 remains our target date, despite some uncertainty about the last criterion we have to meet: inflation," he said.

"I can assure you that, on the basis of my contacts, knowledge and experience I have built up over the years in the public sector, the present leadership of the Finance Ministry will continue and will be even more effective along the path to the eurozone regarding the communication with our European partners," Chobanov said. He sees an agreement on the Partnership Agreement for the organization of information and communication campaigns on this country's euro changeover that was recently signed with the European Commission as a strong signal that Bulgaria is moving in the right direction and retains its European partners' support.