Bulgaria enters the waiting room for the eurozone and the banking union

The European Central Bank included the Bulgarian lev in the Exchange Rate Mechanism (ERM II).

The central rate of the Bulgarian lev is set at 1 euro = 1.95583 leva and the standard fluctuation band of plus or minus 15 percent will be observed around the central rate of the lev.

The agreement on participation of the lev in ERM II is based on the commitment by Bulgaria to join the Banking Union and ERM II simultaneously and the completion by the Bulgarian authorities of a set of measures, described in an letter of intent dated 29 June 2018.

These measures pertain to the following six policy areas: banking supervision, the macroprudential framework, the supervision of the non-banking financial sector, the anti-money laundering framework, the insolvency framework, and the governance of state-owned enterprises.

The agreement on participation of the Bulgarian lev in ERM II is furthermore accompanied by a firm commitment by the Bulgarian authorities to pursue sound economic policies with the aim of preserving economic and financial stability and achieving a high degree of sustainable economic convergence.

The Bulgarian authorities have committed to implement specific policy measures on the non-banking financial sector, state-owned enterprises, the insolvency framework, and the anti-money laundering framework.

Bulgaria will also continue implementing the extensive reforms carried out in the judiciary and in the fight against corruption and organized crime in Bulgaria, in light of their importance for the stability and the integrity of the financial system.