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43-808: Bulbank's prototype, the Bulgarian Foreign Trade Bank, started in 1964 as a fully state-owned bank, with a paid-up capital of BGL 40 million and statutory specialisation in foreign trade payments and finance. Representative offices of the Bank in London , Frankfurt , and Vienna were opened during the next two decades. BFTB took part of the establishment of two joint stock companies in 1987 and 1998 — Bayerisch-Bulgarische Handelsbank GmbH (after 1998, HypoVereinsbank Bulgaria) with Bayerische Vereinsbank (HVB) and Bulgarsovinvest (after 1994, Corporate Commercial Bank ) with Vnesheconombank , respectively. In 1991, after

86-520: A fixed exchange rate with a foreign currency . This policy objective requires the conventional objectives of a central bank to be subordinated to the exchange rate target. In colonial administration , currency boards were popular because of the advantages of printing appropriate denominations for local conditions, and it also benefited the colony with the seigniorage revenue. However, after World War II many independent countries preferred to have central banks and independent currencies. Although

129-453: A hard currency such as the U.S. dollar or the euro ). The surplus on the balance of payments of that country is reflected by higher deposits local banks hold at the central bank as well as (initially) higher deposits of the (net) exporting firms at their local banks. The growth of the domestic money supply can now be coupled to the additional deposits of the banks at the central bank that equals additional hard foreign exchange reserves in

172-553: A credible commitment to low inflation. More than 70 countries have had currency boards. Currency boards were most widespread in the early and mid 20th century. Hong Kong operates a currency board ( Hong Kong Monetary Authority ), as does Bulgaria . Estonia had a currency board fixed to the Deutsche Mark from 1992 to 1999, when it switched to fixing to the Euro at par. The peg to the Euro

215-616: A currency board is a common (and simple) way of maintaining a fixed exchange rate, it is not the only way. Countries often keep exchange rates within a narrow band by regulating balance of payments through various capital controls , or though international agreements, among other methods . Thus, a rough peg may be maintained without a currency board. The main qualities of an orthodox currency board are: The currency board in question will no longer issue fiat money but instead will only issue one unit of local currency for each unit (or decided amount) of foreign currency it has in its vault (often

258-421: A lion on their kings' royal seal: a symbol of the bravery, courage and invincibility of Bulgarian warriors, who fought "like lions." Lion images on revolutionary flags, used in the 1876 freedom-seeking April uprising, provide a proof that the lion continued to be considered as a national symbol . In the immediate period leading up to the revolt, revolutionary flags were made, featuring a golden lion rampant and

301-426: A new lev replaced the original lev at a rate of 1 "new" lev = 100 "old" leva. However the rate for banking accounts was different, ranging from 100:3 to 200:1. Prices for goods were replaced at a rate of 25:1. The new lev was pegged to the U.S. dollar at a rate of 6.8 leva = 1 dollar, falling to 9.52 leva on July 29, 1957. In 1952, coins (dated 1951) were introduced in denominations of 1, 3, 5, 10 and 25 stotinki, with

344-520: A policy of euro adoption only after five Euro convergence criteria have been met. In 2011 the Bulgarian finance minister Simeon Djankov acknowledged his earlier eagerness for Bulgaria to join the euro, but considered 2015 as a more likely date. If Bulgaria follows the standard path to euro adoption, it would use the euro two years after joining the European exchange rate mechanism (ERM II) (a formality given

387-661: A result of the privatisation procedure between 1998 and 2000 UniCredito Italiano possessed of 93% of the capital and Allianz had 5%. Bulbank sold its participations in Corporate Commercial Bank (99,9%), as well as that in United Bulgarian Bank (35%) and in HypoVereinsbank Bulgaria (49%). In 2001 Bulbank's major shareholder, UniCredito, sold minor stakes to the Italian SIMEST S.p.A., Rome, and

430-518: Is the currency of Bulgaria . In old Bulgarian, the word "lev" meant " lion "; the word "lion" in the modern language is lаv ( IPA: [ɫɤf] ; in Bulgarian: лъв ). The lev is divided in 100 stotinki ( стотинки , singular: stotinka , стотинка ). Stotinka in Bulgarian means "a hundredth" and in fact is a translation of the French term "centime." Grammatically, the word "stotinka" comes from

473-496: The International Finance Corporation — 2,5% and 5,3% of the share capital respectively. Since 2006, Bulbank has been in the process of merging with HVB Bank Biochim and Hebros Bank , after UniCredit Group's merger with HVB Group in 2005. On April 27, 2007, the legal merger between Bulbank, HVB Bank Biochim and Hebros Bank was announced. The name of the merged institution is UniCredit Bulbank. Since 2001,

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516-954: The Soviet occupation in September 1944, the lev was pegged to the Soviet ruble at 15 leva = 1 ruble. A series of pegs to the U.S. dollar followed: 120 leva = 1 dollar in October 1945, 286.50 leva in December 1945 and 143.25 leva in March 1947. No coins were issued after 1943; only banknotes were issued until the currency reform of 1952. Between 1881 and 1884, bronze 2, 5, and 20 stotinki, and silver 50 stotinki, 1, 2, and 5 leva were introduced, followed, in 1888, by cupro-nickel 2 + 1 ⁄ 2 , 5, 10, and 20 stotinki. Gold 10 and 20 leva were issued in 1894. Bronze 1 stotinka were introduced in 1901. Production of silver coins ceased in 1916, with zinc replacing cupro-nickel in

559-590: The fall of the Communist regime , the Bank Consolidation Company (BCC) was founded as a holding company to consolidate the state ownership in the banking sector and to facilitate the privatisation of banks. BCC held 98% of Bulbank's share capital. Bulbank was the first Bulgarian bank to adopt SWIFT codes, whereby it significantly strengthened its operational performance and enhanced the reliability of its transactions. The 1992 meeting of shareholders changed

602-469: The 2 leva coin was issued. These coins are not found in general circulation. Many commercial commemorative coins have also been minted. In 1999, banknotes were introduced in denominations of 1, 2, 5, 10, 20, and 50 leva. 100 leva notes were added in 2003. The 1 and 2 lev notes were later replaced by coins of similar value and withdrawn from circulation. The fourth lev was pegged to the German mark at par from

645-478: The 5, 10, and 20 stotinki in 1917. In 1923, aluminum 1 and 2 leva coins were introduced, followed by cupro-nickel pieces in 1925. In 1930, cupro-nickel 5 and 10 leva and silver 20, 50, and 100 leva were introduced, with silver coins issued until 1937, in which year aluminium-bronze 50 stotinki were issued. In 1940, cupro-nickel 20 and 50 leva were issued, followed, in 1941, by iron 1, 2, 5, and 10 leva. In 1943, nickel-clad-steel 5, 10 and 50 leva were struck. These were

688-466: The Bulgarian revolutionaries' image. "Young Bulgarian heroes...lion signs on their foreheads, fire blazing in their eyes," says a most popular Bulgarian Revival period song. The lev was introduced as Bulgaria's currency in 1881 with a value equal to the French franc . The gold standard was suspended between 1899 and 1906 and suspended again in 1912. Until 1916, Bulgaria's silver and gold coins were issued to

731-548: The CEO of UniCredit Bulbank is Levon Hampartzoumian. In May 2019, Teodora Petkova became the CEO and Chairman of the Management Board of UniCredit Bulbank. Протоколи КЗП договори за кредит * [1] Предписание от КЗП * [2] Наказателно постановление No. ЗИИП-К-8729/01.12.2010 г. * [3] Bulgarian lev The lev ( Bulgarian : лев , plural: лева, левове / leva , levove ; ISO 4217 code: BGN ; numeric code: 975)

774-580: The Middle Ages, Bulgarian kings such as Ivan Shishman , one of the last rulers of the Second Bulgarian kingdom, celebrated the lion as a symbol of power. In the time of Bulgarian national awakening in the years of Ottoman bondage, the lion was considered and widely used as a major national symbol. Paisii of Hilendar, a discerning monastic and a key Revival figure, mentioned in his ground-breaking tome Istorija Slavjanobolgarskaja that Bulgarians had

817-908: The Soviet Union during the same period, particularly in design and size. The state emblem is depicted on the obverse of all coins, which went through several changes. The first change in 1962 with the introduction of the new coinage, and the second change in 1974, with the ribbons being the most noticeable change. A number of commemorative 2 leva coins also circulated during this period, often released into circulation as they had relatively high production numbers and little collector's value. Higher denomination lev coins have also been introduced into circulation at an irregular basis with varying sizes and metallic compositions, including silver. Mostly due to an overstock of numismatic coins not getting sold to collectors. Similar occurrences to this can be seen with high denomination coins from East Germany and Poland during

860-420: The bank's status to a universal commercial bank, so the branch network was expanded ( Plovdiv , Kardzhali , Burgas , Stara Zagora , etc.), focusing on customer service in the years to follow. In 1994, the meeting of shareholders passed a resolution to change the bank's name to Bulbank. In 1998, Bulbank co-branded its international card payment system with Visa International and Europay International . As

903-517: The conditions are met, Bulgaria should join the Eurozone as soon as the price stability criterion is met. In November 2023, Bulgarian euro coin designs have been revealed and approved by the Bulgarian National Bank . The currency's name comes from the archaic Bulgarian word "lev," which meant lion . The lion has been the national symbol of Bulgaria over the centuries. Lions were common in

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946-591: The denomination. In 1952, state notes (dated 1951) were issued in 1, 3 and 5 leva, together with notes of the National Bank for 10, 25, 50, 100 and 200 leva. 500-lev notes were printed but not issued. 1 lev notes were withdrawn after the introduction of a coin in 1960. 1, 3, and 5 leva depict the state emblem, while all denominations 10 leva and up depict Georgi Dimitrov , who had a postmortem cult of personality built up around him by that time period. The reverse side of 1 lev, 3 and 5 leva notes depict hands holding up

989-421: The euro no earlier than two years after joining assuming the other convergence criteria are met. In 1999, coins in denominations of 1, 2, 5, 10, 20 and 50 stotinki were introduced. A 1 lev coin replaced the 1 lev banknote 2002, and a 2 lev coin the 2 lev banknote in 2015. In 2004, 2005, and 2007, commemorative circulation issues were struck of the 50 stotinkas coin. In 2018, a commemorative circulation issue of

1032-501: The expected end of the lev: towards the end of that year 1 January 2012 was a possible date; however, the 2007–2008 financial crisis and the Eurozone crisis reduced the initial enthusiasm for the euro. Nevertheless, in 2009 The Economist noted suggestions to accelerate Bulgaria's path to the euro, or even let it be adopted immediately, despite the EU institutions' unwillingness to deviate from

1075-500: The first to lack a metal designation. In 1928, a new series of notes (dated 1922 and 1925) was introduced which gave the denominations solely in leva. Denominations introduced were 5, 10, 20, 50, 100, 500, 1000 and 5000 leva. These were followed in 1929 by 200 and 250 leva. In 1930, coins up to 100 leva replaced notes, although 20-lev notes were issued between 1943 and 1950. Between 1943 and 1945, State Treasury Bills for 1000 and 5000 leva were issued. In 1952, following wartime inflation,

1118-433: The hammer and sickle, while higher denominations each depict workers at various trades. In 1962, another redenomination took place at the rate of 10 to 1, setting the exchange rate at 1.17 leva = 1 U. S. dollar, with the tourist rate falling to 2 leva on February 1, 1964. The ISO 4217 code was BGL . After this, the lev remained fairly stable for almost three decades. However, like other Communist countries' currencies, it

1161-569: The hands of the central bank. The virtue of this system is that questions of currency stability no longer apply. The drawbacks are that the country no longer has the ability to set monetary policy according to other domestic considerations, and that the fixed exchange rate will, to a large extent, also fix a country's terms of trade , irrespective of economic differences between it and its trading partners. Typically, currency boards have advantages for small, open economies which would find independent monetary policy difficult to sustain. They can also form

1204-545: The last coins issued for this version of the lev. In 1885, the Bulgarian National Bank introduced notes for 20 and 50 gold leva, followed in 1887 by 100 gold leva and, in 1890, by 5 and 10 gold leva notes. In 1899, 5, 10 and 50 silver leva notes were issued, followed by 100 and 500 silver leva in 1906 and 1907, respectively. 500 gold leva notes were also introduced in 1907. In 1916, 1 and 2 silver leva and 1000 gold leva notes were introduced, followed by 2500 and 10,000 gold leva notes in 1919. In 1924, 5000 leva notes were issued,

1247-478: The lev was pegged to the Deutsche Mark , with 1,000 lev equal to 1 DM (one lev equal to 0.1 pfennig). Since 1997, Bulgaria has been in a system of currency board , and all Bulgarian currency in circulation has been completely backed by the foreign exchange reserves of the Bulgarian National Bank (BNB). In 1962, aluminum-bronze 1, 2, and 5 stotinki, and nickel-brass 10, 20 and 50 stotinki and 1 lev were introduced. The coin series strongly resembles coinage from

1290-526: The lev's peg to the euro). In late 2010, given Bulgaria's improving economy, analysts thought that Bulgaria would join the ERM II the following year. However, the continued postponement of joining the mechanism has prevented Bulgaria meeting all five convergence criteria: its rebounding economy later met the four other criteria. On 10 July 2020, along with Croatia , Bulgaria joined the ERM II , which allows it to adopt

1333-428: The lower three denominations in brass and the higher three in cupro-nickel. Shortly after, cupro-nickel 20 stotinki coins dated 1952 were also issued, followed by 50 stotinki in 1959 and 1 lev in 1960 which replaced the 1 lev note (both also in cupro-nickel). All stotinki coins feature a head of wheat around denomination on the reverse and state emblem on the obverse, while the lev coin depicts an olive branch wreath around

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1376-635: The motto "Freedom or Death." These flags, most often hand-made by local teachers or icon painters, have been preserved in Bulgarian museums to the present day. Most flags were made of green silk and had a painted or embroidered lion on them, in a heraldic posture and trampling over the Crescent – the symbol of the Ottoman Empire. The same image can be seen on items of one-time rebel outfits such as hats and buttons. In Bulgarian folklore and Revival Literature, these lion depictions were called lion signs attributed to

1419-515: The peso in January 2002. The economy fell deeper into depression before a recovery began later in the year. The British Overseas Territories of Gibraltar , the Falkland Islands and St. Helena continue to operate currency boards, backing their locally printed currency notes with sterling reserves. A gold standard is a special case of a currency board where the value of the national currency

1462-420: The region until about 300 BC. In Bulgaria, the lion features in numerous historical monuments. The oldest images, found on slates in the city of Stara Zagora , date back to the 9th–10th century AD. A lion is depicted on The Madara Horseman – an impressive medieval rock relief carved into a towering rock plateau in northeastern Bulgaria in the 7th or 8th century AD, which is on UNESCO 's World Heritage List. In

1505-585: The same denominations, was issued in 1974. 50 leva notes were introduced in 1990. Again, denominations 10 leva and up featured Georgi Dimitrov, 1, 2, and 5 featured the state emblem. After the fall of the communist regime, new notes were introduced for 20, 50, 100 and 200 leva. These were followed by 500 leva notes in 1993, 1000 and 2000 leva in 1994, 5000 and 10,000 leva in 1996 (re-released with new design and look in 1997), and 50,000 leva in 1997. Furthermore, two new banknotes of 20,000 and 100,000 leva were scheduled to be introduced in 1997 and 1998, but their production

1548-399: The same period. In 1992, after the communist era , older coins were withdrawn and a new coinage was introduced in denominations of 10, 20 and 50 stotinki, 1, 2, 5 and 10 leva. All were struck in nickel-brass except for the cupro-nickel 10 leva. In 1997, nickel-brass 10, 20 and 50 leva were introduced. In 1962, the National Bank issued notes for 1, 2, 5, 10 and 20 leva. A second series, in

1591-549: The same specifications as those of the Latin Monetary Union . Banknotes issued until 1928 were backed by gold ( leva zlato / zlatni , лева злато / златни) or silver ( leva srebro / srebarni , лева сребро / сребърни). In 1928, a new gold standard of 1 lev = 10.86956 mg gold was established. During World War II, in 1940, the lev was pegged to the German Reichsmark at a rate of 32.75 leva = 1 Reichsmark. With

1634-522: The start. With the replacement of the Deutsche Mark by the euro , the lev's peg effectively switched to the euro at the rate of 1.95583 leva = 1 euro (precisely equivalent to the German mark's fixed exchange rate to euro). This rate is unlikely to change before the lev's eventual retirement. Currency board In public finance , a currency board is a monetary authority which is required to maintain

1677-496: The word "sto" (сто; a hundred). Since 1997, the lev has been in a currency board arrangement with initially the Deutsche Mark at a fixed rate of BGL 1000 to DEM 1. After the introduction of the euro and the redenomination of the lev in 1999, this has resulted in a fixed rate to the euro of BGN 1.95583 : EUR 1. Since 2020, the lev has been a part of the European Exchange Rate Mechanism (ERM II). When all

1720-435: Was canceled following the introduction of currency board in 1997. On 5 July 1999 the lev was redenominated at 1000:1 with 1 new lev equal to 1 Deutsche Mark . The ISO 4217 currency code for the new Bulgarian lev is BGN . The lev is pegged at €1 = 1.95583 leva (previously DEM 1 = BGN 1, continuing the fixed exchange rate from the third lev). Since Bulgaria gained EU membership in 2007 various dates have been suggested as

1763-493: Was not an orthodox currency board, as it did not strictly follow currency board rules – a fact which many see as the true cause of its collapse. They argue that Argentina's monetary system was an inconsistent mixture of currency board and central banking elements. It is also thought that the misunderstanding of the workings of the system by economists and policymakers contributed to the Argentine government's decision to devalue

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1806-523: Was not freely convertible for Western funds. Consequently, black market rates were five to ten times higher than the official rate. During the period, until 1989 the lev was backed by gold, and the banknotes have the text stating: "The bank note is backed by gold and all assets of the bank" ( Bulgarian : "Банкнотата е обезпечена със злато и всички активи на банката" ). After the fall of communism, Bulgaria experienced several episodes of drastic inflation and currency devaluation. In order to change this, in 1997,

1849-473: Was upheld until January 2011 with Estonia's adoption of the Euro (see Economy of Estonia for a detailed description of the Estonian currency board). Argentina abandoned its currency board in January 2002 after a severe recession. To some, this emphasised the fact that currency boards are not irrevocable, and hence may be abandoned in the face of speculation by foreign exchange traders. However, Argentina's system

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