Pursuant to the Law on the Introduction of the Euro in the Republic of Bulgaria, published in State Gazette No. 70 on August 20, 2024, all financial instruments denominated in BGN and held by the Bank’s clients will be automatically converted into euro as of the date the euro becomes the official currency of Bulgaria, following the general rules outlined in the Euro Law.
Following the general rules for conversion and rounding under the Euro Law, the conversion from BGN to EUR will be carried out by dividing the amount in lev by the official exchange rate value expressed to five decimal places.
The amount in euro obtained from the conversion will be rounded to two decimal places, using the third decimal place as the basis, in line with the following mathematical rule:
If the third digit after the decimal point is less than 5, the second digit remains unchanged.
If the third decimal digit is 5 or greater, the second decimal place is rounded up by one.
The conversion of financial instruments from Bulgarian lev to euro will be carried out in accordance with the rules set forth in the Law on the Euro:
The market operator or investment intermediary managing the trading venue will convert the market value of non-cash financial instruments from BGN to euro, following the general conversion and rounding rules set out in the Law on the Euro, unless specific rounding rules for the particular financial instrument are established by law or EU legislation.
“Central Depository” JSC automatically revalues the nominal value of non-cash financial instruments recorded in the central securities register from BGN to euro, following the general rules for conversion and rounding.
All transactions and operations involving non-cash financial instruments shall be suspended no later than three business days prior to the date of the euro’s introduction in Bulgaria.
Transactions and operations shall resume on the first business day following the introduction of the euro. All settlement systems will provide the capability to execute trades in euro from that date onward.
1. Shares
The conversion of the nominal value of shares and the capital of commercial companies will be carried out in a way that preserves shareholders’ rights and their proportional ownership in the capital.
The nominal value of one share will be converted from BGN to euro following the general conversion and rounding rules set out in the Law on the Euro. The total number of shares owned by the client remains unchanged after the nominal value of one share is revalued.
2. Debt Instruments, Excluding Government Securities (Bonds)
The total nominal value of one issue of debt securities shall be revalued from Bulgarian lev to euro according to the general principles and rules for conversion and rounding set forth in the Law on the Euro.
The nominal value of one bond in euro is obtained by dividing the total nominal value of the bond issue, expressed in euro, by the number of bonds in the issue.
The performed conversion does not alter the rights and obligations of the issuer and the holder.
3. Government Securities (GS)
The nominal value of all government securities in Bulgarian lev shall be converted once from lev to euro according to the general principles and rules for conversion and rounding.
The conversion of nominal values for each individual account and each government securities issue is performed by the Bulgarian National Bank.
For the issued registered certificates of ownership of government securities in lev, the values are regarded as euro values in accordance with the general conversion and rounding rules. The certificates are valid until the claims of the persons named in them, arising from ownership rights in the government securities of the respective issue, have been fully settled.
The market value in euro of government securities originally issued in lev is determined based on the revalued nominal value and calculated per 100 nominal units with two decimal places.
4. Collective Investment Schemes, National Investment Funds, and Alternative Investment Funds
On the first business day after the euro is introduced in Bulgaria, the net asset value (NAV) of a collective investment scheme in euro is determined by converting the NAV in BGN from the previous business day, following the general conversion and rounding rules under the Law on the Euro. The NAV of one unit in euro is determined by dividing the revalued NAV by the total number of outstanding units, and rounding the result to four decimal places as follows:
1. When the fifth digit after the decimal point is less than five, the fourth digit remains unchanged.
2. When the fifth digit after the decimal point is equal to or greater than five, the fourth digit is increased by one unit.
The issue price of one unit in euro and the repurchase price per unit shall be rounded according to the rule stated above.
The rules outlined above apply correspondingly to national investment funds and alternative investment funds.
For all other activities and products, the bank will publish information progressively.