The Parliamentary Committee on Budget and Finance accepted in the first reading the draft law proposed by the Council of Ministers (MC) for the introduction of the euro in the Republic of Bulgaria (ZVERB).
It regulates the principles, rules and procedures for the introduction of the euro as the currency of Bulgaria. The purpose of ZVERB is to ensure the smooth introduction of the euro in Bulgaria and to increase transparency and awareness of the process of introducing the euro in the country, it is stated in the motives of the importers, specified BTA.
In order to implement the introduction of the euro in the country, it is necessary to create a legal framework that will regulate public relations in connection with the accession of Bulgaria to the eurozone by ensuring legal certainty and creating conditions for the smooth and efficient functioning of the economy . It is also necessary to regulate in the national legal order the basic circumstances, rules and principles according to which the replacement of the leva with the euro will be carried out, the MC notes.
Official Deputy Prime Minister and Minister of Finance Lyudmila Petkova pointed out that the law does not specify a specific date for the introduction of the euro or the official exchange rate of the leva to the euro.
The regulatory act provides for the creation of a rule for the automatic conversion of amounts from levs into euros, as well as defines key rules for the transition to the euro - for conversion and for rounding.
ZVERB introduces specific rounding rules for the payment of remuneration, benefits, cash benefits and pensions under part one of the Code on social security and social benefits and benefits. In order to avoid the risk of putting citizens in a financial disadvantage compared to before the introduction of the euro, it is envisaged that the second digit after the decimal point will be rounded up in case the third digit after the decimal point is non-zero. In practice, this would lead to an overall increase in remuneration, benefits, cash benefits and pensions paid under Part One of the Social Security and Social Benefits and Benefits Code. An exception to the general rule is also provided in relation to the rules for the conversion of the capital of commercial companies, the Court of Justice states.
ZVERB plans to introduce the so-called "double pricing period". During this period, the prices and other monetary amounts for payment, crediting and debiting will be written and presented to the citizens both in BGN and in Euro. This obligation begins one month after the date of entry into force of the Decision of the Council of the European Union on the adoption of the euro by Bulgaria and will remain in force for a period of one year after the introduction of the euro.
After this period, dual labeling will be discontinued to give citizens the opportunity to fully get used to the new currency.
During the period described above, upon receipt of a cash payment in BGN, merchants will be obliged to return the balance in EUR, unless they have sufficient current cash availability in EUR. In addition to this rule, traders will have the option not to accept more than 50 leva coins, including pennies, in one transaction. It is envisaged that in the event of a complaint about a product or service, merchants will return the amount paid in euros, unless they have sufficient current availability, and when merchants carry out cash operations with machines, devices and self-service systems, only euros will be used. As long as the period of double circulation lasts, merchants cannot increase the prices of the goods and services they offer, when this is not justified by objective economic factors, the law also provides.
Minister Petkova pointed out that the Bulgarian National Bank (BNB) will exchange BGN and Euro banknotes in unlimited quantities and without time limits for free, and "Bulgarian Post" will exchange coins and banknotes free of charge in settlements where there are no banking or credit institutions.
From the date of introduction of the euro, all accounts will be converted free of charge. Account holders will only be able to withdraw in euros, the Acting Minister of Finance also pointed out.