site.btaECB Sets Transitional Provisions for Minimum Reserve Requirements for Banks in Bulgaria Following Euro Adoption

On September 23, the Executive Board of the European Central Bank (ECB) adopted a Decision on transitional provisions for the application of minimum reserves by the ECB following the introduction of the euro in Bulgaria on January 1, 2026.

As of January 1, 2026, credit institutions and branches of credit institutions located in Bulgaria will be subject to the Eurosystem’s minimum reserve requirements. Given that the regular reserve maintenance period runs from December 23, 2025, to February 10, 2026, transitional provisions are necessary to ensure that the relevant institutions are integrated smoothly into the Eurosystem’s minimum reserve system, without placing a disproportionate burden on institutions located in Bulgaria.

The Decision, in line with decisions taken when other countries joined the euro area, provides for a transitional maintenance period from January 1 to February 10, 2026, for the imposition of minimum reserve requirements on institutions located in Bulgaria.

Furthermore, it sets out specific rules governing the application of minimum reserve requirements during the transitional period and describes the method for calculating the reserve base in relation to the transitional period for liabilities owed to institutions located in Bulgaria.

In this respect, institutions located in other euro area countries may decide to deduct any liabilities owed to institutions located in Bulgaria from their reserve base for the maintenance periods from December 23, 2025, to February 10, 2026, and from February 11 to March 24, 2026.