site.btaUPDATED National Assembly Adopts Conclusively Euro Changeover Bill

The National Assembly adopted conclusively the bill on the euro changeover in Bulgaria. It regulates the principles, rules and procedures for the introduction of the euro in Bulgaria, sets out key rules for the euro changeover and introduces transitional periods that will allow citizens to adapt to the new currency. The bill does not set a specific date for the euro's introduction or an official exchange rate of the Bulgarian lev against the euro. These will be set by the EU Council by unanimous decision of the eurozone members and Bulgaria, the texts of the bill read.

Parliament agreed to introduce a so-called double-marked prices period, during which prices will be displayed in both leva and euro. This period will start one month after the date of entry into force of the EU Council’s decision on Bulgaria's adoption of the euro and will remain in force for one year after the date of the introduction of the euro. After this period, the double-marked prices will be discontinued to allow citizens to get fully accustomed to the new currency.

The bill also introduces a period of dual circulation. Within one month of the euro's introduction, the lev and the euro will both be legal tender. After this period, the lev will be withdrawn from circulation and cease to be legal tender.

During the period of double-marked prices and services, the total final amount to be paid by the consumer shall be included in the receipt or another document registering the payment, in both euro and lev, together with the official exchange rate of the lev against the euro.

During the dual circulation period, when paying in cash in leva or euro, the merchant will give the full amount of the change in euro. If the merchant has insufficient cash to give the customer his full amount of change in euro, the merchant will give the change in full in leva.

The bill also provides that the Bulgarian National Bank will exchange free of charge, in unlimited quantity and with no due date, banknotes and coins from leva to euro at the official exchange rate. In the first six months following the changeover, banks will exchange banknotes and coins from leva to euro free of charge. For the same period, postal operator Bulgarian Posts will exchange banknotes and coins from leva to euro free of charge in towns and villages where there are no bank offices or branches.

The bill also regulates the rules relating to the adaptation of information systems to the euro, as well as the adaptation of registers, accounting documents and other documents to the euro.

Within three working days before the date of introduction of the euro in Bulgaria, all transactions and operations with non-cash financial instruments shall be suspended.  Transactions and operations shall resume on the first working day following the introduction of the euro. All settlement systems shall provide for the possibility of concluding transactions in euro as of that date.