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Teodor Marinov presented an analysis of UBB of the euro adoption impact on the financial sector in Bulgaria
02 June 2025
Teodor Marinov, Chief Financial Officer at UBB, presented an analysis of the Bank of the euro adoption consequences on the financial sector in Bulgaria. This happened during the forum, entitled: Euro Adoption in Bulgaria: Consequences and Practical Aspects for Businesses, held on 29 May in Sofia. The event was organized jointly by the French-Bulgarian Chamber of Commerce and Industry and by the German-Bulgarian Chamber of Commerce and Industry. Its main aim was to present before the members of both organizations different expert viewpoints, linked to the introduction of the euro currency in Bulgaria.
In his presentation Teodor Marinov showcased before the forum participants direct impact assessments of the euro adoption on the costs for adaptation of systems and the acceptance and handling of cash in the financial sector, as well as of the effects on the income from currency exchange. He also spoke about the impact on the liquidity, interest rates on deposits and loans and other topics. In the opinion of UBB’s CFO upon the adoption of the euro the risk of the BGN/EUR exchange rate fluctuations would be eliminated, and the liquidity of banks would be further improved with the release of the larger part of the minimum reserve requirements of commercial banks with the BNB. ECB refinancing options upon situations, requiring larger liquidity would be of extreme importance for the banking sector.
He presented two scenarios for evolution of interest rates in Bulgaria as compared to those in the Eurozone and emphasized that their faster convergence would be supported by the further reduction of interest rates in the eurozone. „The euro adoption in Bulgaria is going to support economic growth. Our analysis indicates that the positive inertia of recent years will be retained, when notwithstanding the political instability in this country, there was actual growth achieved of both wages and of the GDP per capita. Our projection is that this is going to continue also in case of adopting the euro currency as a legal tender in Bulgaria.“, he added.
The forum was declared open with an address by the Ambassadors of France and of Germany, who expressed their optimism with regard to the forthcoming report and the benefits from Bulgaria’s accession to the Eurozone. That same optimism and willingness to cooperate was expressed also by the Republic of Bulgaria’s Minister of Finance. Discussion panels involved leading experts in the field of finance, technology, insurance, legal services, providers of food vouchers and others.
