Banks are fully prepared for the transition to the euro and there is no reason for concern among citizens and traders. This was stated on the air of "Hello, Bulgaria" by the General Secretary of the Association of Banks in Bulgaria, Assoc. Prof. James Yolovski.
According to him, the process is proceeding smoothly, and the signals for a lack of starter packs with euros and small coins are mainly due to the transition period and the increased demand in the first days of the new year.
Yolovski explained that since the summer, traders have had the opportunity to request starter packs with euros in advance through the banks serving them. These packages for legal entities are larger and were available even before January 1, although the euro was not yet an official means of payment at that time. However, after the beginning of the new year, merchants can now purchase additional quantities of euro coins directly from banks, and until the end of January the law also allows for the return of change in levs.
Regarding money exchange, Yolovski emphasized that the conversion of all funds in accounts and deposits was carried out at the fixed rate and without any fees.
He explained that the "movements" of funds displayed in electronic banking are not bank fees, but a technical reflection of a decrease in lev and an increase in euro availability. Until June 30, banks will exchange both banknotes and coins without fees, with the only recommendation being that the coins be pre-sorted for faster service.
The Secretary General of the Association of Banks assured that there is no problem with the capacity of the banking system. In just a day and a half between Christmas and New Year, about 1 billion leva were withdrawn from circulation. According to data, by the end of December, there were still about 21 billion leva in cash, with over a third of the total amount already returned to the banks. The process is taking place at a pace similar to that during the introduction of the euro in Croatia, and January is expected to be a key month for the withdrawal of further significant amounts of leva from circulation.
Regarding the deposit of large amounts of cash, Jolovski reminded that banks strictly apply the Law on Measures Against Money Laundering. For amounts over 5,000 euros, a declaration of the origin of the funds is required, and attempts to circumvent these rules by making multiple smaller payments are not permissible. Banks are obliged to monitor such practices and apply the law without exception.
Assoc. Prof. Yolovski also commented on the issues surrounding bank accounts, cards and loans. He pointed out that the terms of existing loans remain unchanged, including interest rates, and the transition to the euro does not automatically lead to more profitable refinancing. Customers have the opportunity in the next two months to assess for free whether to merge their accounts or close unnecessary ones, with the fees remaining the same as before.