FAQ

Conversion is the change of the monetary unit in which an amount or value is denominated from leva into euro by applying the official conversion rate and the rounding rules set out in the Law on the Introduction of the Euro in the Republic of Bulgaria. It refers to prices, deposits, loans, financial instruments, etc.

Until the date of the introduction of the euro in the Republic of Bulgaria, credit institutions organise the supply of euro banknotes, euro coins and euro coin starter kits to the Bulgarian Posts EAD and traders. Credit institutions (banks) also organise the loading of self-service machines, including terminal ATM devices, with euro banknotes.

Until the date of the introduction of the euro, the currency in the Republic of Bulgaria is the lev. 

It is necessary to make amendments to statutes, company agreements, articles of incorporation, rules, procedures and other internal acts or contracts related to the performance of activities or the provision of services, when they are related only to the conversion of values from leva into euro within 12 months from the date of the introduction of the euro in Bulgaria.

Values denominated in leva in existing contracts and documents shall be deemed to be  values denominated in euro when applying the official exchange rate and the conversion and rounding rules.

The introduction of the euro does not affect the validity of existing contracts with references to the lev. Values denominated in leva in existing legal instruments shall be considered to be values denominated in euro when applying the official exchange rate and the conversion and rounding rules.

The introduction of the euro shall not have the effect of altering any of the terms of any contract or document or of discharging from any obligation or performance, nor shall it entitle a party to amend or terminate any such document unilaterally unless otherwise expressly agreed between the parties.

Prices will be formed according to the following rules of currency conversion and rounding:

• Conversion rule: the numerical value of the price in leva is divided by the full numerical value of the official exchange rate with all five decimal places.
• Rounding rule: the resulting sum is rounded to the second decimal place on the basis of the third decimal place in accordance with the following mathematical rounding rule:
  • if the third decimal place is less than five, the second decimal remains unchanged;
  • if the third decimal place is equal to or greater than five, the second decimal increases by one.

Salaries will be paid in euro from the date of adoption of the single European currency in Bulgaria. They will be converted into euro by being rounded to the nearest euro cent, and if the third decimal place is greater than zero, the second decimal increases by one.

Yes, the prices of goods and services should be displayed in both leva and euro during the period of dual display. Consumers shall be provided with clear, accurate and timely information about the values of goods and services in leva and in euro.

Prices shall be displayed in a clear, legible, unambiguous and easy-to-understand manner in the same font size and in a way that does not mislead consumers. They should be placed alongside one another and should be accompanied by a distinctive sign or abbreviation enabling them to be easily identifiable. The final amount to be paid by the consumer will also be displayed in both currencies on the fiscal/system slip issued.

Where the display of the price per unit of the goods is mandatory pursuant to Art. 20(1) of the Consumer Protection Law, the trader may only provide a dual display of the selling price of the goods.

In the case of announcements of price reductions on goods and services that are expressed in absolute terms or as a percentage, the trader may provide dual display of the prices of goods and services only in relation to the final price to be paid by the consumer.

The period of dual display of the prices of goods and services in leva and in euro starts one month after the date of entry into force of the Decision on Euro Adoption and ends 12 months after the date of the introduction of the euro in Bulgaria, i.e. approximately 17 months.

According to the indicative schedule of the National Plan for the Introduction of the Euro in the Republic of Bulgaria, from the date of the introduction of the euro in the Republic of Bulgaria the leva and the euro will be legal tender on the territory of the Republic of Bulgaria for one month. This means that during this one month citizens will be able to make payments in both currencies. After this period the lev will cease to be legal tender on the territory of the Republic of Bulgaria.

During the first month of the introduction of the euro, citizens will be able to pay in both currencies in shops and service centres.

During this period, traders will be obliged to give change (and in the case of claims, to refund the amount paid) to their customers in euros only. Only in the event of objective impossibility will the trader be entitled to return the change (the amount paid) in cash in leva or in leva and in euro. This would provide another exchange channel for the exchange of the lev for the euro and for the withdrawal of the lev from circulation.

A rule derived from European legislation will be adopted according to which a trader may may refuse to accept more than 50 coins in leva, including stotinki, in a single transaction with the buyer in that one month.

During the period of dual circulation, traders may not increase the prices of the goods and services they offer in case that this is not justified by any objective economic factors.

The introduction of the euro as the currency of the Republic of Bulgaria and all the resulting procedures and activities shall be carried out in the most efficient and appropriate manner, and the expenses arising for persons shall not be compensated with public funds.

The actual conversion of claims and liabilities, the servicing of bank accounts and the changeover to payments in euro are not expected to entail additional costs for the banks’ client companies.

On the date of the introduction of the euro in the Republic of Bulgaria, the balances of the accounts in leva shall be converted into euro in accordance with the rules for conversion and rounding described in the Law on the Introduction of the Euro in the Republic of Bulgaria.

With the introduction of the euro, economic and public entities should prepare their financial reporting in the new currency, and any data for a prior accounting period should be converted into euro in order to ensure comparability between the current and a previous period. In the declarations and forms to be completed by citizens and legal entities after the introduction of the euro and which relate to tax and other obligations to the state or receivables from the state for the period preceding the year of introduction of the euro, the amounts will be in leva. The actual payments on the basis of these liabilities and receivables, however, will be made in euro, the amounts being converted into the new currency according to the official fixed exchange rate.

The value of each individual available asset or liability is converted from leva into euro in accordance with the general rules for conversion and rounding, with the exception of items of remuneration for work done, cash and social benefits, and pensions under Part One of the Social Security Code, which are converted according to different rounding rules.

Exchange differences arising from the conversion shall be accounted for as current accounting income and expense and shall be recognised for tax purposes in the year in which they are accounted.

Yes, and any differences arising on the capital recalculation shall be accounted in the equity.

From the date of the introduction of the euro, the current accounting and reporting shall be carried out in euro and the annual financial statements shall be prepared in thousands of euro, with the figures for the previous reporting period converted into thousands of euro in accordance with the conversion and rounding rules to ensure comparability between the current and the previous periods.

The annual financial statements will be prepared in accordance with the official monetary unit in the Republic of Bulgaria at the end of the reporting period, and the comparable data for the previous reporting period should be in the same currency.

Monetary values in tax returns and declarations for compulsory social security contributions, in declarations under the Gambling Law and in acts and documents issued under the Tax and Social Insurance Procedure Code, which are submitted for an expired tax/social security period, shall be indicated in the currency unit which was the official currency of the Republic of Bulgaria at the end of the tax/security period for which the declaration or document is submitted.

When the period for which the tax return or document is submitted ends during or includes the period of dual circulation of the leva and the euro, the monetary values in the tax/social security return or document shall be indicated in euro. Monetary values in tax returns submitted for a future tax period shall be indicated in the currency unit which is the official currency of the Republic of Bulgaria at the time of their submission.

If the agreed interest rate on the loan/deposit is fixed, the bank should continue to apply a fixed interest rate after the introduction of the euro. The switch from a fixed rate in leva to a fixed rate in euro may not result in less favourable conditions or results for either the customer or the bank.

If the agreed interest rate on the loan/deposit is variable, it will be converted according to a methodology that ensures that the resulting interest payment in euro is equivalent to that in leva on the date of conversion.

From the date of the introduction of the euro, all government securities originally denominated in leva will be automatically converted into euro.

If the agreed interest rate on the securities or other financial instruments is fixed, the issuer should continue to apply a fixed interest rate after the introduction of the euro.

The mechanism for transferring from a fixed interest rate in leva to a fixed interest rate in euro should not result in less favourable conditions or results for the parties of the transaction. In this regard, the transition from a fixed interest rate in leva to a fixed interest rate in euro should be determined according to the issuer’s methodology, guaranteeing that the resulting interest payment in euro is equivalent to that in leva on the date of currency conversion.

If the securities or other financial instruments are contracted with a variable interest rate, this parameter will be modified in a manner regulated by the provisions of the Law on the Introduction of the Euro. The transition from a variable interest rate in leva to a variable interest rate in euro should be determined according to the issuer’s methodology, guaranteeing that the resulting interest payment in euro is equivalent to that in leva on the date of currency conversion.

The change in the nominal value of collateral pledged/mortgaged in favour of banks and financial institutions should be automatically reflected through the Central register of special pledges and/or the Property register. In order to protect the interests of the persons who have established the collateral, no other changes are allowed as to the value of the pledged/mortgaged property as a result of the automatic conversion from leva to euro, i.e. the replacement of the leva with the euro should not be used as a reason to change (both upwards and downwards) the value of the collateral.