ECB President congratulated PM on Bulgaria’s admission to eurozone waiting room

Bulgaria’s Prime Minister Boyko Borissov on July 13 had a telephone conversation with the President of the European Central Bank (ECB) Christine Lagarde on the occasion of Bulgaria's admission to the eurozone waiting room.

Participation in the Exchange Rate Mechanism II and the Banking Union connects the economies of the participating countries in a common system that provides benefits of a political and economic nature. By joining the banking union, Bulgaria participates directly in the decision-making process regarding the future financial architecture of the eurozone and the European Union, which will greatly increase the burden of Bulgaria in protecting the national interest.

Christine Lagarde personally congratulated Prime Minister Borissov and the government on the entry of the country into the eurozone waiting room. "This is a big step on Bulgaria's path to the eurozone," the ECB head said, adding that the European currency connects more than 340 million people in Europe. Lagarde congratulated the Bulgarian PM on the government's fiscal policy. “You have conducted many consistent policies in the financial and economic spheres, thanks to which Bulgaria is approaching the adoption of the single European currency, " said Christine Lagarde.

"Our admission to the waiting room of the eurozone is a great success for Bulgaria. I am confident that we are on the right track," said Prime Minister Boyko Borissov, adding that this will bring significant benefits to our economy and Bulgarian citizens. Borissov pointed out that this step is important for establishing Bulgaria's image internationally, which is important for the country's credit rating and investor interest, while our accession to the Banking Union is an additional guarantee for the stability of the Bulgarian banking system. The possibility of access is provided, if necessary, to the Single Restructuring Fund (EDF) with a target level of over € 55 billion, a fund that offers restructuring funding opportunities far exceeding the capacity of a number of national restructuring funds.

PM Borissov thanked the President of the ECB for the cooperation, recalling that one of the advantages of membership in the Foreign Exchange Mechanism II was achieved about two months ago. A swap line was then established between the ECB and the BNB, which allows Bulgaria to exchange levs for euros of up to 2 billion euros if necessary, without affecting the country's foreign exchange reserves.

During the conversation, Borissov confirmed that Bulgaria will continue to pursue, as before, a prudent economic policy in order to preserve economic and financial stability. The Prime Minister was adamant that Bulgaria continues the purposeful work on its way to the eurozone. He also noted the difficult situation in the world due to the COVID-19 pandemic. "We are facing a great challenge, but I am sure that we will cope with common efforts," Borissov said.

Source: BNT