On the day that the procedure for Bulgaria's accession to the eurozone was completed, banker and financier Petar Andronov said on Nova TV that adopting the euro is an important opportunity, but it is not a magical solution to all problems.
„We are currently in a festive mood, positive optimists, but joining the eurozone should not be perceived as Alice in Wonderland for us. Nobody will give us anything for free. Everything that will happen there depends entirely on us“, he said. Andronov stressed that economic problems in the eurozone are possible with poor governance, giving the example of Greece:
„Immediately after adopting the euro, there is no country that went downhill. But economies with poor governance - yes. Greece is the clearest example“. In his words, adopting the euro does not automatically guarantee a better life or more investment: “The euro is not a guarantee of more jobs or a better life. But it brings political stability and economic benefits, such as lower interest rates and access to cheaper financial resources. The euro is a platform. If we expect someone else to solve our problems - we will be disappointed. The real work starts now“.
According to Andronov, Bulgaria will derive additional benefits through the improvement of its rating assessments by international agencies:
“The effect of adoption is already being realized - the rating agencies in their latest reports explicitly stated that the eurozone is a key condition for improving our assessment. There is increased interest in Bulgaria from investors.“
However, he warned that the mere presence of the euro would not be enough: “Investors will look for a functioning administration, judicial system, infrastructure. Our task does not end with the adoption of the euro“.
Regarding risk-sharing in the eurozone, Andronov explained that stabilization mechanisms already exist: “Instruments were created after the crisis - the stability fund has over 500 billion euros. Small and vulnerable economies such as Cyprus, Ireland and Portugal received assistance. They are now coping and returning the funds“.
On the subject of banking supervision, he reminded that Bulgaria is already under the direct supervision of the European Central Bank:
“We have been in the Banking Union for five years. Bulgarian banks are under the supervision of the ECB. The new thing is that there will now be an opportunity for help from the central bank in a crisis – something that the currency board did not allow“. Andronov assured that the transformation to the euro will not harm consumers:
“The rounding will be according to standard mathematical rules – to no one's advantage. Interest rates will not increase. The transition is designed so that there will be no negative effects for customers“.
According to him, there will be no significant changes in lending: “It will not be more difficult to get a loan. The conditions will remain the same. Income, collateral, credit history will be monitored. There is no need to worry“.
He added that the only more serious challenge is the technological transition to the new currency: “The software is the most complex part. The banking sector has been working on this for almost two years now. We expect the process to be completed smoothly and on time.“
Regarding ATMs and cash services, he assured that there is no reason to panic: “Banks and the BNB are preparing to load ATMs and cash registers with the new currency. As now, there may be no money in places at a certain moment, but this is not something new or related to the euro“.