Bulgarian Companies Set to Gain as Eurozone Entry Raises Valuations

Manyu Moravenov, Executive Director of the Bulgarian Stock Exchange (BSE), has stated that Bulgarian companies are expected to become more expensive following the country’s accession to the eurozone. He made the remarks during an informational event in Blagoevgrad, held as part of a nationwide campaign to introduce the single European currency.

Moravenov highlighted that adopting the euro will benefit Bulgaria’s capital market, which reflects a broad cross-section of the national economy. He emphasized that this impact is already noticeable, with the SOFIX index ranking among Europe’s top performers this year. Additionally, the number of small investors has increased by roughly 30 percent.

Eurozone membership will also open doors for closer integration and partnerships between the BSE and other European capital market institutions. “We are in serious talks with smaller exchanges in the eurozone, and this will be a key focus in the coming years,” he noted.

A major advantage of joining the euro will be the elimination of currency risk in company valuations. Although the lev is pegged to the euro, some investors still view it as a separate currency, which can restrict participation or create conversion challenges. By adopting the euro, these barriers will be removed, expanding the pool of potential investors.

Moravenov also pointed out the role of Bulgaria’s sovereign credit rating. The rating has already been upgraded, and another increase of at least one point is anticipated next year. This improvement enables cheaper debt issuance not only for the state but also for Bulgarian companies, lowering financing costs.