Dimitar Radev: Fulfilling the budget deficit criterion will not be the last good news on the road to the euro

After Bulgaria met the inflation criterion earlier this year, we have to wait for the convergence reports of the European Central Bank and the European Commission to answer the question of whether we will be able to join the eurozone next year.

The BNB Governor also commented on the deal announced yesterday for the acquisition of "TBI Bank" by the American private equity investment company "Advent International". He stated that banking consolidation and investments in the sector are among the effects of our approach to the eurozone.

Radev, who is leading the Bulgarian delegation during the Spring Meetings of the International Monetary Fund in Washington, also indicated that in the US capital he had held a meeting with the Governor of the People's Bank of China (the country's central bank – ed. note) Pan Gunsheng. During the meeting, Radev and Gunsheng signed a document making the 2019 Memorandum of Cooperation permanent. This, according to Radev, will contribute to "broader exposure to a number of important issues for the BNB, such as macroeconomic analyses of the global environment, digital currencies of central banks, opportunities for diversification in reserve management".

Dimitar Radev also commented on the current trade confrontation in the world, and according to him, the prospects "for a deep and prolonged recession are unlikely".

Mr. Radev, for journalists and observers, the prevailing tone of the Spring Meetings of the IMF and the World Bank is one of uncertainty and concern. How do you see things from the inside?

There is undoubtedly uncertainty and concern. But in professional discussions, the prevailing tone is one of seeking solutions, not confrontation.

However, the IMF has lowered its assessments of the global economy. Do you consider the fears of a recession to be real?

The risks to the global economy should not be underestimated. However, I expect the negative effects of today's turmoil to be rather transitory. In this sense, the prospects for a deep and prolonged recession are unlikely.

What is the outcome of today's situation anyway?

This question has more than one answer. If I had to answer in general terms, I expect the West to emerge stronger from today's situation in the long term, not weaker. For us, as an integral part of the West, this is the best development worth working for.

During the Spring Meetings, you had a series of multilateral and bilateral meetings with your colleagues from many countries.

This is how central banks do business. Using the Spring Meetings platform is effective as it saves time and resources.

You also signed a memorandum of cooperation with the Governor of the People's Bank of China Pan Gongsheng.

In the same context. We positively assessed the implementation of the memorandum we signed in 2019 and gave it permanent status.

What are the benefits for us?

Broader exposure to a number of important issues for the BNB, such as macroeconomic analyses of the global environment, digital currencies of central banks, diversification opportunities in reserve management.

Eurostat reported that Bulgaria has fulfilled the budget deficit criterion for 2024. For some observers, this is surprising.

Not for those who are closely and professionally involved in this issue.

Such a development seems to greatly increase our chances of joining the eurozone from January 1, 2026?

Let me answer you this way – this will not be the last good news on the subject.

You have repeatedly emphasized the advantages of accession for the country. Last week you indicated that this will improve financing conditions for businesses and households as early as this year.

Yes, through the larger available financing resources and the better credit rating.

Can we expect other short-term effects?

Maybe, including in terms of bank consolidation and investments in the sector. For example, a significant acquisition project in our banking sector has already been publicly announced, which is expected to materialize by the end of this year.

Are you referring to the acquisition of "TBI Bank" by "Advent International"?

Yes. Of course, the formal process is still to come.

Am I to understand that in such complex international conditions there can be good news for Bulgaria?

Only if we manage to navigate well in today's turbulent environment. In the BNB and the banking sector, we have created a solid capacity in this regard in recent years, which we are currently using. I am convinced that our politicians and the country as a whole have the potential to do the same.