site.btaFiscal Council Chair Says Bulgaria’s Credit Rating Will Likely Be Upgraded following Final EU Confirmation of Country's Euro Area Entry

Speaking on Bulgarian National Television on Saturday, Fiscal Council Chairperson and former finance minister Simeon Djankov emphasized the need for Bulgaria to have a regular government not only through the end of 2025, but also throughout next year, in order to ensure an "organized and normal" accession to the euro area. He predicted that Bulgaria’s credit rating will likely be upgraded in early July.

He said that on July 8, EU institutions are expected to give a final green light for Bulgaria’s euro area entry, based on favorable reports from the European Central Bank and the European Commission, as well as decisions from ECOFIN and the Council of the EU. "From July 8, we are heading towards January 1, 2026, the date for Bulgaria’s euro area entry. Nothing can turn us around," Djankov said.

Djankov noted that Bulgaria has been ready to join the euro area for almost 18 years, stressing that "it is better to join now than later."

He said that an anti-speculation law "would not be meaningless."

He rejected the idea of holding a referendum on the euro, saying that "the time for such a referendum has long passed." "It cannot be that in the final months, when the decisions are already being made, this topic suddenly comes up," he added. Djankov acknowledged that President Rumen Radev and politician Maya Manolova are right in saying there are many unanswered questions about the transition, and that Bulgaria lags behind other countries in its public communication on the issue.

The Fiscal Council Chairperson said that Bulgaria’s progress towards the euro area owes much to Prime Minister Rosen Zhelyazkov, noting that "in Brussels, they revere him as an example of a modern European politician." Djankov also praised Finance Minister Temenuzhka Petkova for her management of Bulgaria’s financial transition toward euro adoption.

He said that Bulgaria’s credit rating will likely be upgraded in early July. In countries like Croatia, Slovakia, Estonia, Latvia, and Lithuania, credit ratings were raised by an average of two notches in the same week they received final approval to join the euro area, he said. Such an upgrade would allow Bulgaria to borrow at more favorable rates. At the moment, the State borrows at around 4%. With the expected credit rating increase, that could drop to 3.5%, Djankov said.