The European Commission has published its 2020 Convergence Report, which presents its assessment of the progress made by non-euro area Member States in adopting the euro.
The report covers the seven non-euro zone member states that are legally obliged to adopt the euro: Bulgaria, Poland, Romania, Hungary, Croatia, the Czech Republic and Sweden, the European Commission said in a statement on 10 June.
"Today's convergence report shows encouraging progress made by some countries, although they still have to go through several stages before joining the euro zone. As always, the Commission is ready to support these Member States. An important stage on this path is the accession to the ERM II currency mechanism, for which Croatia and Bulgaria are preparing themselves at the moment. We welcome the efforts of both countries in this direction," said EC Vice President Valdis Dombrovskis.
In his previous statements, Dombrovskis stressed that "Bulgaria can join the ERM II mechanism in July, if it fulfills the last condition", which, in his words, is the increase of Fibank's capital.
As “The Banker” has written, First Investment Bank sold all 110 million rights to increase its capital at the auction which took place on June 10.
The new issue shares, which the bank places through the Bulgarian Stock Exchange, will be subscribed against these rights.
The planned deadline for subscription of shares by right-holders is June 25. It will be clear by then whether our country has fulfilled the last requirement for membership in ERM II.
Bulgaria meets two of the four official criteria, one of which is membership in ERM II for the introduction of the euro as a national currency. Our country does not meet the requirements for price stability due to rising inflation. Bulgaria fulfills the criterion for public finances, as well as that for long-term interest rates.
