site.btaFulfilment of Budget Deficit Criterion Will Not Be Last Good News on Road to Euro Adoption, Central Bank Governor Says

The fulfilment of the budget deficit criterion "will not be the last good news" on the road to the euro, Bulgarian National Bank (BNB) Governor Dimitar Radev said in an exclusive interview with the Bulgarian News Agency (BTA) during the 2025 Spring Meetings of the World Bank Group and the International Monetary Fund, which are taking place in Washington D.C on April 21-26.

On Tuesday, official data from Eurostat and the National Statistical Institute showed that Bulgaria's budget deficit in 2024 was 3%. This is a value that must not be exceeded for the country to be eligible to adopt the euro.

Since Bulgaria also met the inflation criterion earlier in the year, the convergence reports of the European Central Bank and the European Commission are the only remaining steps to joining the euro area from next year.

The BNB Governor also commented on the deal announced Wednesday for the acquisition of TBI Bank by US private equity investment firm Advent International. He said bank consolidation and investment in the sector were among the effects of the Bulgaria's rapprochement with the eurozone.

Radev also pointed out that he had a meeting with People's Bank of China Governor Pan Gongsheng in the US capital. During the meeting, Radev and Gongsheng signed a document making the 2019 Memorandum of Cooperation open-ended. This will contribute to "broader exposure to a range of issues important to the BNB, such as macroeconomic analysis of the global environment, central bank digital currencies, and opportunities for diversification in reserve management," Radev explained.

Radev also commented on the current trade confrontation in the world, saying that the prospects for "a deep and prolonged recession are unlikely".