site.bta67% of Lev Banknotes Withdrawn from Circulation, Says Euro Coordination Centre Chair

The process of withdrawing lev banknotes from circulation is progressing well and steadily, with 67% of the cash in levs collected so far, Vladimir Ivanov, Chair of the State Commission on Commodity Exchanges and Wholesale Markets and Head of the Coordination Centre on Euro Adoption in Bulgaria said on Tuesday.

Speaking at a regular briefing at the Council of Ministers, Ivanov said this represents about two-thirds of all levs issued by the Bulgarian National Bank (BNB), with around BGN 10 billion still remaining in circulation.

Regarding the activity of Bulgarian Posts, Ivanov reported that between January 19 and 23 a total of 24,172 transactions were carried out, amounting to approximately BGN 47 million. The highest amounts were paid out in the North Central region, with around BGN 11 million, followed by the South Central region with BGN 9 million and the Western region with BGN 9.5 million.

On control activities, Ivanov said the Commission for Consumer Protection (CCP) carried out 370 inspections under the Introduction of the Euro in the Republic of Bulgaria Act between January 16 and 22. As a result, 12 statements of violations were drawn up, five penalty decrees were issued and seven settlements were concluded. The inspections covered food products, parking facilities, pharmacies, school canteen vouchers following complaints received, as well as other alerts. Ivanov added that, based on reports from regional governors concerning prices in school canteens across the country, an organization has been set up to conduct on-site inspections, which are currently ongoing.

Ivanov also noted a sustained decline in the number of complaints received, down by nearly two-thirds, from around 3,000 in the first week of the month to fewer than 900 at present.

The National Revenue Agency (NRA) conducted 1,441 inspections between January 19 and 23. These included 394 food shops, 30 hairdressing salons, 11 hotels, 30 parking facilities and 15 fitness centres.

According to Ivanov, the NRA data are similar to those of Croatia both in terms of the number of inspections carried out and the number and percentage of violations identified.

The Bulgarian Food Safety Agency (BFSA) conducted 146 inspections of sites producing foods from the small consumer basket between January 19 and 23, issuing two prescriptions. In joint inspections with the CCP, 25 pharmacies were checked in 17 regions of the country, with no irregularities found within the BFSA’s remit. At present, there are no significant deviations in the quality of products offered following Bulgaria’s entry into the euro area, Ivanov said.

He added that between January 16 and 22, 23 new cases of counterfeit euro banknotes, including specimen notes, were registered. Eleven pre-trial proceedings were initiated, and 12 files were opened. More than 100 banknotes with a denomination of EUR 100 were seized, along with 51 EUR 10 notes, two EUR 20 notes, four EUR 50 notes, two EUR 200 notes and three EUR 500 notes.

Asked whether there had been reports of refusals to accept EUR 200 banknotes, Ivanov said there had been signals involving certain small outlets that refused them. He stressed that EUR 200 banknotes are legal tender. BNB Chief Cashier Stefan Tsvetkov added that if someone attempts to pay for a cup of coffee with a EUR 200 banknote, the merchant may refuse, as this would violate the principle of good faith.