Cash holdings in Bulgaria remain high, with over 30 billion leva reportedly kept outside the banking system. The Association of Bulgarian Banks has urged citizens to deposit these funds into banks ahead of the country’s planned eurozone entry. James Yolovski, Secretary General of the association, explained this during an interview with Bulgarian National Radio.

Positive feedback from the European Central Bank and the European Commission on Bulgaria’s readiness to join the eurozone is anticipated in June, with a final political decision expected in July.

Yolovski emphasized that once money is deposited in bank accounts, the conversion from leva to euros will be automatic and free of charge.

Despite global instability and uncertainty, the Bulgarian economy continues to perform strongly. Recent data for the first quarter shows GDP growth surpassing 3%, placing Bulgaria among the top performers in the EU. Unemployment remains very low, below 4%. Forecasts from the European Commission, the Bulgarian National Bank, and the Ministry of Finance point to a positive economic outlook, reinforcing Bulgaria’s rightful place in the eurozone, according to Yolovski. He also assured that banks are fully prepared for the currency transition.

Regarding existing loans, Yolovski stated that fixed interest rates on already issued credits will remain unchanged after Bulgaria adopts the euro. In fact, there may be a slight downward trend in interest rates post-accession. He also reassured that joining the eurozone will not cause an increase in banking service fees.

Source: BNR interview