Euro Conversion Has No Impact on Prices, Says Coordination Centre

The conversion to the euro is not affecting prices in Bulgaria. Where rounding does occur, it is below one per cent, said Vladimir Ivanov, Chair of the Coordination Centre for the Euro Mechanism. According to him, there have been no reports of irregularities in the conversion from the lev to the euro in banks. The process is progressing at a good pace, comparable to that seen in Croatia and Slovakia.

58% of Lev Banknotes Withdrawn from Circulation

The Coordination Centre also announced that the problems experienced during the first ten days of the conversion are beginning to subside. Citizens and traders were urged to obtain euro banknotes and coins in good time.

Vladimir Ivanov, Chair of the Coordination Centre, said:
“With regard to the domestic market, we monitor a consumer basket which, since the beginning of the year, has increased by €1.50 and now stands at €53. Of this increase, 75 cents come from basic foodstuffs and 80 cents from fruit and vegetables, reflecting upward price movements.”

Ivanov reported a signal from the village of Mramor, in the Topolovgrad municipality, where fewer than 300 people live. There, only one supplier delivers goods, and it was alleged that the company had refused to accept euros and had raised prices at its own discretion. A check showed that until early December two shops had been operating in the village, but one has since closed. According to local residents, the elderly shopkeeper found it difficult to cope with the transition to the euro. She denied claims that the supplier refused to accept euro payments.

Milena Ivanova, owner of a shop in the village of Mramor, said:
“The other grocery shop closed because the shop assistant is close to retirement. The reason is the euro. She no longer wants to work, saying it is difficult for her to deal with the euro and that she does not want additional problems.”

She added:
“Everything is normal here. Both currencies are accepted. If someone pays in levs, they get change in levs; if they pay in euros, they get change in euros. I have not heard of any irregularities.”

Since the beginning of the year, the National Revenue Agency (NRA) has issued 48 penalty decrees, imposing fines totalling €125,000. The authorities described the case of a hairdressing salon in Burgas, which raised its prices by 291 per cent, as an isolated incident.

Joint inspections by the NRA, the Bulgarian Food Safety Agency and the Commission for Consumer Protection continue.