The Euro and Financial Instruments: What Will Change for Banks and Clients?
The introduction of the Euro in Bulgaria is planned for January 1, 2026. This has been officially confirmed by the European Commission, the European Central Bank, and the Consultative Council for National Security, and is integrated into the adopted national legislation.
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Fixed Conversion Rate: 1 EUR = 1.95583 BGN.
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Dual Pricing Period: From August 8, 2025, to August 8, 2026, prices must be displayed in both BGN and EUR.
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Transition: In January 2026, payments can be made in either currency. As of February 1, 2026, the Euro will be the sole official currency for all payments.
What It Means for Clients: Fixed Loans, Floating Rates, and Peace of Mind
Loans with a Fixed Interest Rate
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No Changes: The interest rate remains unchanged, and monthly instalments will not increase despite the currency switch. This is guaranteed by the Euro Adoption Act—banks are prohibited from raising fixed rates during the transition.
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Automatic Conversion: Loan balances and instalments will be converted automatically and free of charge at the fixed rate. Your monthly payments remain equivalent in value.
Loans with a Variable (Floating) Interest Rate
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Benchmark Adjustments: Interest is calculated based on specific indices (e.g., values published by the BNB or NSI). Upon joining the Eurozone, these may be replaced by their European equivalents (such as EURIBOR).
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Legal Safeguards: The law guarantees that any index replacement cannot result in a higher interest rate than the rate in effect before the Euro adoption.
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Potential Benefits: Instalments will not spike due to the currency change. On the contrary, internal banking analyses predict a potential decrease in floating rates in the medium term, driven by more stable indices and improved credit conditions within the Eurozone.
General Security and Transparency
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Accounts: Funds in current, deposit, and savings accounts will be automatically converted and at no cost on January 1, 2026.
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Account Consolidation: Within a 2-month window, clients can close one of their accounts (BGN or EUR) and merge funds without any fees.
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Transparency: Any fee changes must be published at least two months in advance. The dual pricing period will help clients easily spot any unjustified price increases.
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International Experience: Data from countries like Slovakia, Lithuania, and Latvia show no sharp spikes in interest rates, but rather stabilisation and increased competition among banks following Euro adoption.
Recommendations for Our Clients
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Fixed Rates: Expect no change. Your instalments stay the same, simply denominated in euros.
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Floating Rates: Minor adjustments are possible, but they will remain within reasonable, legally protected limits.
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Stay Informed: Review your contract to see if your rate is fixed or floating and how it is structured. This will give you a clear answer to “What should I expect?”
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Don’t Rush into Refinancing: Consult with an independent Mortgage Broker at Creditchoice Ltd. to evaluate your specific case before making major decisions.
Trust the Experts
The transition to the Euro is well-planned and legally protected. At Creditchoice Ltd., we are on your side. As a registered, independent credit intermediary with extensive banking experience and a member of the Association of Credit Intermediaries in Bulgaria, we compare offers from 16 banks and present them in a simple, clear format.
Our service is completely free of charge for you—our remuneration comes from the banks, while our commitment is entirely to your interests. With Creditchoice, you can feel confident about your financial future. We speak your language and stand by you through every financial milestone.
