site.btaCentral Bank Governor Says New Balance Sheet Reflects Bulgaria's Full Participation in Eurozone

The Bulgarian National Bank (BNB) has started publishing a new balance sheet format reflecting Bulgaria's accession to the eurozone as of January 1 and its full participation in the Eurosystem, BNB Governor Dimitar Radev told BTA. Radev, who is also a member of the European Central Bank's Governing Council, said the new framework follows ECB methodology, providing greater transparency, comparability and clarity regarding the country's assets, liabilities and liquidity. It replaces the publications of the Issuing and Banking Departments previously posted on the BNB website.

Bulgaria joined the eurozone with a strong financial position, increased gold reserves, including additional purchases in 2025, and a net creditor position within the Eurosystem, reflecting its accounting and settlement relations in the common monetary system, Radev added. The enlarged balance sheet underscores the BNB's expanded role as an active participant in euro area monetary policy. The new balance sheet serves as a key reference for financial markets and the public, and is an institutional signal of Bulgaria's deeper integration into the single currency union, he said.

Following is the full text of the interview:

Q: Mr Radev, since the beginning of the year the BNB has published a new balance sheet. What is behind this change?

A: The new balance sheet will be published on a weekly, monthly and annual basis. Weekly data are already available, while monthly and annual publications will be introduced in line with Eurosystem practices. This is a natural and logical step following Bulgaria's accession to the eurozone. The balance sheet is fully structured according to ECB methodology and is fully comparable with the balances of other national central banks in the eurozone.

Q: How is the BNB helping the public understand the new format?

A: The BNB is providing detailed methodological information alongside the balance sheet, following established practice and mirroring the ECB's approach. This guidance explains the content of key balance sheet items, the logic behind their presentation and their connection to Eurosystem operations. The aim is to ensure clear, comparable and understandable information for a wide range of users.

Q: What information does this balance sheet provide?

A: The balance sheet provides a structured and economically meaningful picture of the central bank's assets and liabilities. It allows, in summary form, tracking of the state's cash position, reflecting the size of the fiscal reserve. At the same time, it offers a clear view of the banking sector's liquidity through the mandatory and excess reserves of commercial banks and their interaction with the central bank's operations.

Q: How does this balance sheet relate to eurozone monetary policy?

A: The balance sheet reflects how Eurosystem monetary policy decisions are transmitted to the national financial system. Movements in key balance sheet items show the effects of liquidity-providing and liquidity-absorbing operations, the BNB's participation in common monetary policy instruments, and settlements between national central banks within the Eurosystem. In this sense, the balance sheet is an integral part of the monetary policy transmission mechanism.

Q: What is the role of the balance sheet as an informational benchmark?

A: The balance sheet also serves an important informational role for financial markets and the wider public. It provides a comprehensive and transparent benchmark for assessing monetary conditions, the liquidity environment, and the BNB's institutional position within the eurozone. This helps shape market expectations and contributes to greater predictability and confidence in the conduct of monetary policy.

Q: The balance sheet is significantly larger than during the period of the currency board arrangement. Why is it so?

This reflects the substantially increased institutional role of the BNB following Bulgaria's accession to the eurozone. The balance sheet now includes elements that did not exist under the currency board arrangement: participation in common monetary policy, in euro banknote issuance and in settlements between central banks within the Eurosystem. These items are characteristic of all national central banks in the eurozone and are structural, not temporary, in nature.

Q: How should the larger balance sheet be interpreted?

A: The larger balance sheet is a natural result of eurozone membership and Bulgaria's participation in a significantly larger monetary system. It reflects the broader scope of the central bank's activities and the new functions it performs within the Eurosystem.

Q: How has the BNB's role changed in this new context?

A: The BNB's role is evolving in a natural and predictable way, from an institution primarily focused on maintaining a specific currency regime to an active participant in the eurozone's collective monetary policy. The BNB manages its balance sheet, takes part in decision-making within the Eurosystem and is responsible for implementing monetary policy and maintaining financial stability in Bulgaria.

Q: How does this balance sheet fit into the broader context of Bulgaria's euro adoption?

A: The new balance sheet is the institutional reflection of a well-prepared and consistently implemented process of eurozone accession. Bulgaria joined the monetary union with a strong financial position, increased gold reserves, including additional purchases in 2025, and a net creditor position within the Eurosystem, reflecting its accounting and settlement relationships within the common monetary system.

Q: What is the key message for the public?

A: The message is that the new balance sheet demonstrates Bulgaria's full functioning as part of the eurozone. It signals deeper integration, a broader institutional role, and a higher level of responsibility. The Bulgarian National Bank continues to carry out its functions with the same stability and expertise, now within a larger, well-established monetary system.