After Bulgaria joins the eurozone, the rate of mandatory minimum reserves (MRR) for local banks will be significantly reduced, dropping from the current 12% to just 1%. Additionally, the base on which this rate is calculated will also decrease. The Bulgarian National Bank (BNB) expects that these changes will free up more funds that banks can use to finance businesses, companies, and households.

As per preliminary data from October 2024, the reserve base, which is currently calculated from the funds banks attract, is estimated to decrease by about 6.3 billion leva. This will result in a reduction of mandatory reserves by approximately 15 billion leva. The BNB notes that half of the cash banks hold, including that in ATMs, is considered part of the mandatory reserves. However, funds attracted from the state and local budgets are not subject to this reserve requirement.

With the implementation of these changes, the funds released by the reduction in mandatory minimum reserves will continue to be held on the BNB's balance sheet and transferred to the "deposit facility." This system is already in use by commercial banks in the eurozone, where they place their liquid funds in the national central banks.

Furthermore, once Bulgaria adopts the euro, the BNB will no longer be responsible for maintaining the stability of the national currency through the buying and selling of foreign currency on demand. This shift marks another significant economic change following the country's integration into the eurozone.