The Bulgarian National Bank (BNB) has released another set of practical guidelines regarding the transition to the euro once the country joins the eurozone. Among the key points is the procedure for exchanging damaged and torn leva banknotes for euros, which will be possible directly at the bank. During the one-month grace period following euro adoption, payments can still be made in leva, but taxes and public obligations will only be payable in cash. ATM withdrawals in leva will not be possible during this time.

Key highlights from the BNB guidelines include:

1. Euro Coin Minting:

• The minting of euro coins with a Bulgarian national side will commence immediately after the EU Council’s decision to admit Bulgaria into the eurozone.

• The initial quantity of Bulgarian euro coins will be determined based on the expected return of Bulgarian leva coins to the BNB, as well as demand and existing stocks. The decision will also consider the overall growth of euro coins in circulation, in consultation with the European Central Bank.

2. Coin Release and Distribution:

• Bulgarian euro coins and banknotes will enter circulation on the designated euro adoption date, as specified by the EU Council decision. Initially, the coins will be circulated only in Bulgaria, but they will eventually be used throughout the eurozone.

• The BNB will ensure there is a sufficient supply of both euro banknotes and coins for at least one year. The quantity of coins minted will be adjusted based on the banks’ requests prior to the euro adoption date.

3. Coin Edge Inscription:

• The edge of the two-euro coin will bear the inscription "БОЖЕ ПАЗИ БЪЛГАРИЯ," a nod to a historic tradition in Bulgarian coinage. This inscription was common on Bulgarian coins minted between 1882 and 1943. Similar edge inscriptions exist on two-euro coins from other eurozone countries, such as Germany, Latvia, and the Netherlands.

4. Exchange of Leva for Euros:

• Damaged leva banknotes and coins can be exchanged for euros at the BNB at the official exchange rate.

• For 12 months following euro adoption, banks cannot refuse to exchange leva for euros. After that, it is at the bank’s discretion. The BNB will continue exchanging leva for euros indefinitely.

5. Cash Transactions and ATMs:

• From the date of the euro adoption, all ATM withdrawals will be in euros only. During the dual circulation period, cash transactions can still be conducted in leva, but change will be returned in euros.

6. Starter Sets of Euro Coins:

• Prior to the euro adoption date, starter sets of euro coins with the Bulgarian national side will be available for purchase by individuals and businesses from banks and the BNB. However, these coins cannot be used until the official euro changeover date.

7. Business Preparedness:

• Merchants can secure euro banknotes and coins before the adoption date through arrangements with their banks. These supplies, however, cannot be used until the euro officially replaces the leva.

8. Payment Systems Transition:

• From the euro adoption date, leva payment systems such as BISERA 6 and RINGS will cease operations, and all bank transfers will be conducted in euros. Cash payments in leva will still be possible during the dual circulation period but will be limited to specific circumstances.