European Exchange Rate Mechanism
The European Central Bank (ECB) and the National Bank of Bulgaria (BNB, the central bank) have set up a swap line to ensure liquidity of up to two billion euros, the BNB said on Wednesday. The line will be in force until the end of 2020 or until needed. The maximum maturity in respect of each withdrawn amount will be three months, BTA reported.
Bulgaria's Finance Minister Vladislav Goranov has confirmed that Bulgaria is continuing its plan to enter the ERM-2 exchange rate mechanism. One of the commercial banks in the country still need to comply with the European Central Bank's recommendations for additional capital buffers. In doing so, Bulgaria will meet the requirements for applying to join the European Banking Union and ERM-2.
The low per-capita income on average represents the biggest issue regarding Romania's real convergence in view of joining the Eurozone (EZ), however, it's not a a formal criterion for euro accession, experts with the European Central Bank (ECB) believe.
Bulgaria's push to join the euro zone is having a beneficial impact on the country, the International Monetary Fund said on Friday, reports Reuters.
In order to join the ERM-2 mechanism, the two year "waiting room" for the euro zone this summer, Bulgaria has committed to improve financial sector supervision, anti-money laundering measures and management of state-owned companies.