PM Borissov: Bulgaria applies for the Eurozone to overcome the crisis

This way we will be able to use additional aid from the EU

Boyko Borissov (R) and Vladislav Goranov

Bulgaria will not give up on its announced plans for entering the Eurozone waiting room. If we enter the waiting room now we will be able to use European aid for overcoming the crisis. This became clear from a statement of Prime Minister Boyko Borissov. He was adamant that the budget deficit will not prevent Bulgaria from applying for Eurozone accession.

“We do not know how long the crisis will last and must get prepared. As soon as a cure for the coronavirus is available, the world will move forward immediately, but it is important to enter the waiting room in order to use the European aid,” Borissov said.

“Those who are in the Banking Union, in the waiting room, or in the Eurozone, may use trillions. Those who are not, will have to manage on their own. The states which do not have a currency board have the option of operating with their national currency. We have a board so we cannot do it. That is why this would be the right move for overcoming the crisis,” Borissov rationalised the decision of the cabinet to apply for the Eurozone waiting room before the end of April. The PM said further that it would be more advantageous to use the support provided by the EU than financing from the IMF.  

“We continue working according to the preliminarily approved plan adopted by Bulgaria and members of the exchange rate mechanism ERM 2, the European Central Bank and the European Commission,” Finance Minister Vladislav Goranov specified. He reminded that on 12 July 2018 Bulgaria declared that the country wants to join the Banking Union and the Eurozone waiting room simultaneously. “This plan is being fulfilled. We have to take only one step to fulfil it completely, and we will work on it very hard in the coming weeks to have the approval of the ECB, political support from the other Member States and positive assessment by the European Commission,” Goranov said. “The commitments of our partners have not changed, and if we do our job within the set deadlines, we will be able to join both the Banking Union and ERM 2,” the finance minister added.

He reminded that after the stress test carried out in two trade banks, the ECB recommended to create additional capital buffers. “One of the banks has already fulfilled this plan, the other fulfilled it 70%. There is only a little more to do to fulfil it 100%. After it is done, the last requirements of the ECB will be fulfilled and probably the bank will give a positive assessment for the establishment of close cooperation with the Banking Union, which is the condition set to Bulgaria for the country's simultaneous accession to ERM 2,” Goranov said.

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