In preparation for the introduction of the euro, Bulgaria is updating its payment services and systems to align with the new currency regime, as outlined in the National Plan. Economist Rumen Galabinov highlighted that this preparation involved ensuring technical readiness for converting from lev to euro.
The conversion rate of 1.95583 will be adhered to, with rounding favoring the second decimal place. Changes are being made to payment services to minimize transaction costs. Currently, the Bisera payment system, used for transactions in leva, will be adapted to handle euros. Transfers in euros will utilize the SWIFT system for inter-currency transactions, aiming to prevent arbitrary cost increases by banking institutions.
Galabinov noted that Bulgaria could request a new convergence report until the end of 2024 at the earliest. He emphasized that the European Guarantee Fund would enhance the security of savings.
Credit consultant Tihomir Toshev added that fixed fees for transfers in Europe, which were between 20 and 40 leva a few years ago, had now dropped to 1 to 2 leva. The new regulations will maintain low transfer costs and speed up transactions to minutes instead of days. This aligns with the Eurozone’s goal of fast, cheap, and secure transfers year-round. Fintech companies will also need to comply with these regulations and individuals will now need to verify the recipient’s IBAN and name for transfers. (Novinite)