Time for Bulgaria to Join Euro Waiting Room - C-Bank Governor

Business » FINANCE | December 8, 2016, Thursday // 13:43| Views: | Comments: 0
Bulgaria: Time for Bulgaria to Join Euro Waiting Room - C-Bank Governor BNB Governor Dimitar Radev. File photo, BGNES

Bulgarian National Bank (BNB) Governor Dimitar Radev has said it is the right time for the country to access the ERM II Mechanism, the so-called "Eurozone waiting room".

Radev has opined that Bulgaria should reassert its commitment to further financial integration with Europe "precisely in these times that both European institutions and the European project as a whole are under very strong pressure. The time is now to confirm our commitment and work for the realization," Capital weekly quotes Radev as saying at an event marking bankers' holiday.

(St Nicholas, celebrated on December 06, is marked as a festive day by sea men, those involved in the fisheries sector, and bankers alike.)

"This commitment is an easy one when it comes to words, in good times, but very hard in tough times."

Earlier, outgoing Bulgarian Finance Minister Vladislav Goranov said, when asked by a lawmaker whether it was time for the country to pursue further steps toward Eurozone integration, that Sofia will submit the demand to EU institutions when there is "external support" for them, in a reference to bigger EU member states and Brussels.

In January of last year, Goranov said the country was willing to restart talks on adopting the euro with the governments of the 19 Eurozone economies.He then argued Bulgaria should aspire to join ERM II by 2018.

Bulgaria is operating a currency board arrangement, a tight monetary policy system that pegs its lev currency to the euro at a fixed exchange rate, but is not in Exchange Rate Mechanism (ERM) II, the formal EU mechanism for limiting currency fluctuations. Countries must spend at least two years in ERM II before joining the euro.

Bulgaria said in September 2012 it was putting on hold its plans to adopt the euro due to the debt crisis and the double dip recession facing the eurozone, along with rising public opposition to abandoning the lev.

Since then, successive governments have been sending controversial signals as to whether the country should adopt the single European currency sooner or later.


Finance » Be a reporter: Write and send your article
Tags: Exchange Rate Mechanism, ERM II, Dimitar Radev, BGN, Vladislav Goranov
Expats.bg All Are Welcome! Join Now!
Bulgaria news Novinite.com (Sofia News Agency - www.sofianewsagency.com) is unique with being a real time news provider in English that informs its readers about the latest Bulgarian news. The editorial staff also publishes a daily online newspaper "Sofia Morning News." Novinite.com (Sofia News Agency - www.sofianewsagency.com) and Sofia Morning News publish the latest economic, political and cultural news that take place in Bulgaria. Foreign media analysis on Bulgaria and World News in Brief are also part of the web site and the online newspaper. News Bulgaria