While meeting all convergence criteria, including price stability in light of high inflation, may pose a challenge for Bulgaria delaying eurozone entry beyond the start of 2025, the ratings agency anticipates potential accession by January 1, 2026, it said in a press release. Euro accession will lead to a positive ratings action, "potentially by several notches", in an upside scenario in the next two years, S&P said.
Bulgaria has been running a currency board for over 25 years and its currency (the lev), has been included in ERM II, the stepping stone to the euro, since 2020.