site.btaVP Iotova: Bulgarian Banks Ready for Euro Adoption

Vice President Iliana Iotova said Bulgarian banks are ready to join the euro area, speaking at a celebration of Bankers’ Professional Day organized by the Association of Banks in Bulgaria (ABB), the President's press secretariat said here Thursday.

Iotova said that convergence reports showed the Bulgarian National Bank (BNB) was the only institution that had completed its work on preparing the country to adopt the single currency, adding that, thanks to its strong authority, the central bank was one of the most reliable partners of the European Central Bank.

Iotova noted that the euro is merely a tool for achieving broader objectives: a security framework that should be used in the best possible way to develop the economy, raise people’s standard of living, and enable Bulgaria, as a full member, to take an active role in shaping the common financial and monetary policy, as well as in debates on euro area reforms and its future.

“Bulgarian citizens should and could have been much better prepared for the moment we adopt the single European currency. Unfortunately, this did not happen because the government, out of fear, avoided an open and honest discussion of all the opportunities and risks associated with joining the euro,” Iotova said.

In her address, Iotova thanked those working in the banking sector for their professionalism. “You provide us with security, stability and predictability. You have turned the Bulgarian banking system into an institution that enjoys the trust of Bulgarian citizens and international partners. The stability of the banking system is a vital element of the country’s national security,” Iotova said. She called on representatives of the banking sector to remain flexible and responsive in the face of turbulent times in both domestic and international politics.

According to information on its website, the Association of Banks in Bulgaria (ABB) was established on April 9, 1992. It was founded by 47 banks and was known as the Association of Commercial Banks until 2007.

Any bank licensed by the BNB to conduct banking activities under the applicable legislation may become a member of the ABB. Membership is voluntary, and currently all banks operating in the country are members of the Association.