Bulgaria's accession to the euro banking union at this stage is not in the country's best interests, central bank governor Ivan Iskrov said at the opening of the new academic year in Sofia.
Joining the banking union would boil down to unilateral transfer of considerable national sovereignty to Frankfurt and Brussels, in exchange for which Bulgaria would get nothing, Iskrov was quoted as saying in a statement published on BNB's website on Monday.
Iskrov pointed to the absence of a common deposit guarantee scheme and a common bank restructuring framework as major shortcomings of the proposed banking structure.
However, he added that BNB supports in principle closer integration and governance within the euro area, including within a fiscal union, a banking union and a political union. "[...] due to the significant imbalances accumulated in the euro area, this may be the only way for its stabilization," Iskrov said.