Bulgaria should keep its currency board system until adopting the euro, and join the EU’s Single Supervisory Mechanism (SSM) immediately after Bulgarian banks pass stress tests, a nominee for a new chief of the country's central bank said on Thursday.
"The central bank should be an active participant in Bulgaria's accession to the eurozone," Biser Manolov said during hearings at the parliament’s budget and finance commission.
Manolov has been nominated by the Reformist Bloc, the junior partner in the coalition government led by Prime Minister Boyko Borisov. He was one of the four nominees for the post of Governor of the Bulgarian National Bank (BNB) who presented their strategies for the future development of the central bank before the commission on Thursday.
Eurozone membership will decrease reputational risk for Bulgaria’s banking system and will improve the coordination and quality of banking supervision as well as access to information and funding conditions, Manolov said.