Denomination of the Bulgarian currency

NEW BULGARIAN BANKNOTES AND COINS


 

What is the meaning of the term ‘denomination of the Lev’?
What will be the impact of denomination on prices?
Will any problems occur in exchange of currency?
How will the card payment system operate after July 5, 1999?
New coins in circulation as of 5 July 1999
New banknotes in circulation as of 5 July 1999

On July 5, 1999, the Bulgarian National Bank has proceeded with the denomination* of the Bulgarian Lev, announced about a year ago.

What is the meaning of the term ‘denomination of the Lev’?

From July 5, 1999 (Monday), the current Bulgarian Lev has been substituted by a new Lev** in a ratio of 1,000 to 1. That is, since this date 1000 old Levs are equal to 1 new Lev. The technological process of replacement of the current lev with a new one is called denomination.

As from July 5, 1999, the Bulgarian National Bank circulates new banknotes and coins. Banknotes are with face value of 1, 2, 5, 10, and 50 Levs, and coins are with face value of 1, 2, 5, 10, and 50 Stotinki. Current banknotes will be accepted as a legal tender until December 31, 1999.

As from July 5, 1999 - Monday, the denomination comes into effect for all BGL banknotes and coins.

The denomination of the Lev will facilitate all payments, and accounting and exchange operations. We will not have to count in big numbers. After July 5, 1999, 1 new Lev will exchange for 1 German Mark, or 0.51 Euro.

The Central Bank will maintain the currency circulation in this country with less resources.



* Syn. issue replacement, revalorization, redenomination.
** The terms ‘old’ and ‘new’ Lev are used provisionally in this text to allow for easier differentiation between the currency of the current issue, and of the 1999 issue.

What will be the impact of denomination on prices?
As an entirely technological process, the denomination of the Lev will not affect prices. To December 31, 1999, prices of all goods and services will be announced and shown in both old and new Levs. Administered prices of electricity, coal, heat energy, natural gas, water supply, telephone services, petrol, and exchange rates quoted by the BNB will be determined and announced only in new Levs.

From July 5 to December 31, 1999, all individuals and sales persons are obliged to accept both old and new currency. The Consumers Protection Committee under the Ministry of Trade and Tourism will exercise control for the compliance with these requirements in the country.

For any malpractice you may alert us on phone (+3592) 980 25 24.


Will any problems occur in exchange of currency?

Banks and exchange bureaux will operate with new and old Levs until December 31, 1999. If you want to avoid any misunderstanding, you are advised to use the services of licensed intermediaries.

How will the card payment system operate after July 5, 1999?

Holders of credit and debit cards operating within the BORICA system (EUROPAY/ Master Card, VISA, American Express, and JCB) will be able to draw on their accounts and pay at POS terminals (terminals for EFTPOS). There will be a one off stop of the system at 0.00 hr. on July 5, 1999, for a central accounting adjustment, that will take 6 hours. At 6.00 hr. on the same day, the system will resume operation. The technical on-site adjustment of all ATMs and POS terminals to operate with new Levs will take about three months. Meanwhile, some of the machines will operate with old Levs. In such cases, the amount of the transaction will be shown on the screen and in the receipt in old Levs - OLD LEVS. Adjusted machines will show the amount in new Levs - LEVS.

Regretfully, the existing system of POS terminals does not make it possible to put a decimal point. Therefore, receipts for card payments in stores will show the amount without a decimal point - i.e. in Stotinki only. For the purpose of conversion into new levs, it will be necessary to put the decimal point by hand. For example, the receipt for the purchase of 30 litres of petrol will feature the amount of 2850 levs. By putting the decimal point by hand before the last two digits the amount is converted into new Levs - 28.50 levs.

BORICA is making all efforts to eliminate these inconveniences to its clients within the shortest possible term.



More information about new Bulgarian banknotes and coins in circulation as of 5 July 1999 please find on the homepage of the Bulgarian National Bank
http://www.bnb.bg