Bulgaria Meets Eurozone Conditions, IMF Chief Confirms: ‘We Comment on the Facts’

Kristalina Georgieva, Managing Director of the International Monetary Fund (IMF), told BGNES that Bulgaria has met the necessary criteria for joining the eurozone. She stated that Bulgaria’s progress should be reflected in the upcoming convergence report, which is expected to assess the country’s readiness for entry into the eurozone positively.

Georgieva emphasized that Bulgaria has been operating under a currency board since 1997, with the lev pegged to the euro since 1999, effectively placing the country within the eurozone in practice. Now, she noted, Bulgaria will take the final step to become a full legal member of the eurozone.

Commenting on President Rumen Radev’s decision to propose a referendum on the timing of Bulgaria’s eurozone entry, and his subsequent referral of the issue to the Constitutional Court, Georgieva stated this is within the president’s rights. She clarified that the IMF does not weigh in on such matters, focusing solely on the facts - namely, that Bulgaria has met the eurozone entry criteria.

She further explained that eurozone membership brings notable advantages, such as improved investment ratings, which in turn attract more investors, create new jobs, and foster growth in key sectors like tourism. Georgieva acknowledged concerns that prices might rise after adopting the euro, but she dismissed these fears. She said the real experience shows that what costs 10 leva today will cost 5 euros tomorrow, and highlighted that while some in the commercial sector may attempt to exploit the transition, determined state action can curb such practices quickly. She pointed to Croatia as a positive example, observing how well tourism is flourishing there and how citizens’ standards of living have improved.

Georgieva concluded by expressing her hope that Bulgaria will enjoy similar benefits. When asked how crucial political stability is for Bulgaria at this stage, she chose to stop short, noting that the IMF’s mandate is focused purely on the economy.

Source: BGNES interview