Loan interest rates in Bulgaria are expected to stay stable even after the transition to the euro, with monthly payments simply shifting from levs to euros. Credit consultant Tihomir Toshev told bTV that the switch will be gradual and smooth, causing little disruption to borrowers.

According to Toshev, banks have been preparing for the euro adoption for about two years and are fully ready to handle the change. He assured that new loans starting from January 1 next year won’t see significant shifts in conditions. For loans with fixed interest rates, the rates will remain unchanged but denominated in euros. For the majority of floating-rate loans, borrowers should monitor the relevant index come January, as this will determine the interest rate going forward and may lead to adjustments within six months.

Toshev also noted that the euro has maintained considerable stability over the years and is increasingly challenging the dollar’s dominance as a global currency. He emphasized that countries within the EU still using their own currencies have experienced higher inflation and rising loan interest rates. In contrast, Bulgarians should remain calm, as adopting the euro is expected to bring more economic benefits and stability in the long run.