Head of IMF Optimistic about Bulgaria's Eurozone Entry Next Year

During a briefing in the Bulgarian capital, Sofia, Kristalina Georgieva, Managing Director of the International Monetary Fund, expressed optimism regarding Bulgaria's potential entry into the Eurozone by 2025. According to her, the crucial aspect is Bulgaria's membership in the Eurozone, rather than fixation on a specific date, as reported by Radio Bulgaria.

Georgieva outlined several advantages Bulgaria would gain by adopting the euro as its national currency. She stated that this move would enhance the country's economic competitiveness, reduce transaction costs in trade and finance, and facilitate investment attraction. She noted the current efforts of the country's government aimed at ensuring Bulgaria meets all necessary criteria for Eurozone membership by the end of the year, suggesting that entry into the Eurozone could realistically occur in 2025.

Regarding Bulgaria's economic prospects, Georgieva highlighted positive growth and inflation reduction. Despite challenges posed by global shocks such as the COVID-19 pandemic and the war in Ukraine, Bulgaria has managed to maintain positive economic growth.

However, Georgieva acknowledged that inflation in the country remains a concern, attributing it to external factors beyond Bulgaria's control. The IMF head urged the Bulgarian government to carefully manage economic instruments to mitigate the impact of inflation, emphasizing the importance of addressing the inflation issue for the welfare of the population, especially the most vulnerable.

Detailed information on Bulgaria's economic indicators and forecasts will be provided after the completion of an IMF expert mission visiting the country on March 19. Georgieva highly praised Bulgaria's resilience in the face of economic challenges, underscoring its ability to sustain growth and manage inflationary pressure amid global uncertainty.

It is worth noting that Bulgaria officially ceased importing and using Russian oil for fuel production from March 1 of this year following the parliament's decision. Additionally, since January 1, 2024, Bulgaria has halted the export of Russian petroleum products.

Last year, the Bulgarian government announced plans to end the exemption from sanctions on March 1, replacing the previous self-imposed deadline of October 31.