Bank Executives: No Change in Loan Interest Rates After Eurozone Accession

In a special interview with BTA today, May 22, Bulgarian National Bank (BNB) Governor Dimitar Radev reiterated that Bulgaria is fully prepared to join the eurozone. He clarified that he had been misquoted in recent days regarding his awareness of the assessment included in the convergence reports.

"Nobody knows the answer to the assessments on Bulgaria's readiness", he added noting that the document is prepared by experts from the European Central Bank (ECB) and approved by its General Council.

Directors of commercial banks in the country said that the eurozone would not change the interest rates on loans in the country.

• BNB is ready for eurozone entry

Meanwhile, digitalisation is transforming access to financial services by making them more personalised, easier to use, and available anytime, anywhere.

Banks are ready for the euro area and will make the transition to the euro easy for customers. Fears of interest rate hikes are unfounded, bankers explain.

“Banks will make this process as easy as possible for people. There will be no fees, no rise in interest rates,” explained Petya Dimitrova, Chair of the Association of Banks in Bulgaria and CEO of a commercial bank.

"If they deposit their money today in the bank that services them, there will be no need to do anything else. Their funds will be converted into euros automatically, free of charge, and at the official BNB exchange rate,” said Tsvetanka Mincheva, CEO of a commercial bank.

“The respective indices linked to the cost of deposit funds will continue to function as they do now, both before and after euro adoption. There will be no change in loan interest rates,” added Nikola Bakalov, CEO of a commercial bank.

However, ongoing digitalisation is expected to bring changes to the banking sector, which aims to stay close to customers and ensure the security of their assets.

“With digitalisation, we address the issue of providing access to financial services for people in remote areas without the need to visit a physical bank branch,” Bakalov explained.

“These innovations and digital solutions will help customers make quick and informed decisions, and enhance the overall customer experience—allowing them easy and fast access to their finances,” said Petya Dimitrova.

While banks remain uncompromising when it comes to cybersecurity, customers are advised to monitor digital channels for potential fraud attempts.