Before end of week Bulgaria is to send application for Eurozone waiting room

Boyko Borissov (R) and Vladislav Goranov

Before the end of the week Bulgaria will send the documents needed to apply for membership of the European Exchange Rate Mechanism, ERM 2. This became clear from the words of Prime Minister Boyko Borissov during a briefing at the Council of Ministers dedicated to the package of financial measures aimed at coping with the economic consequences of the coronavirus epidemic. He stressed that until this moment Bulgaria has not drawn a loan.

“If the coronavirus crisis persists, the Eurozone is our only rescue step. Bulgaria's entry into ERM 2 is a step in the right direction, it is not by accident that the IMF head Kristalina Georgieva commended us, and EC President Ursula von der Leyen did so as well,” Borissov commented on the actions of the government.

Without ERM 2 there is no way for Bulgaria to get access to the Eurozone, said Finance Minister Vladislav Goranov on his part. He also revealed that Bulgaria had sent a letter to the European Central Bank (ECB) regarding the possibility of granting a swap line to Bulgaria. In his words, if our country is part of ERM 2, it will be able to use the ECB foreign exchange swap lines freely and without restrictions in order to uphold the currency board.

“The advantages of joining the Eurozone are many times more than some imaginary worries about our eventual membership,” commented Goranov. Upon entering the waiting room, Bulgaria will be able to exchange BGN for euro with the ECB. A letter from Bulgaria's National Bank has already been sent to the ECB. “We expect positive developments as a potential member of ERM 2,” Goranov added.

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