Dombrovskis: Bulgaria may enter ERM II in July depending on one condition

Valdis Dombrovskis

Bulgaria may enter ERM II, the so-called “waiting room of the Eurozone”, in July as long as it meets one last condition, Valdis Dombrovskis, Executive Vice-President of the European Commission, told Bulgarian National Radio.

Bulgaria was the first to express interest in joining the mechanism and it will be considered alongside Croatia.

Bulgaria has sent the European Central Bank (ECB) an assessment request at the end of April. Shortly before that the Bulgarian National Bank agreed a €2bn swap line with the ECB.

According to Dombrovskis, the instrument is another element bringing stability to the country's financial system.

“We are still aiming for July when the ERM II countries and the European Central Bank are set to discuss the accession of Bulgaria and Croatia to the exchange rate mechanism. The current situation makes no one happy,” Dombrovskis said.

He added that “to get to this phase, both countries made a lot of commitments, most of which have been fulfilled”.

“Bulgaria still has to strengthen the capital of a certain bank, which I hope will be done soon,” Dombrovskis noted.

“If that happens, all commitments will be fulfilled and the two countries will have the chance to join the mechanism in July,” he explained.

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