In connection with the Act on the Introduction of the Euro in the Republic of Bulgaria, promulgated in State Gazette, Issue No 70 of 20.08.24 (the “Euro Act”), as of the date of the introduction of the euro as legal tender in the Republic of Bulgaria, all financial instruments denominated in levs held by the Bank’s clients will be converted ex officio from levs into euros in accordance with the general principles and rules set out in the Euro Act. 
 
In accordance with the general conversion and rounding rules of the Euro Act, the conversion from levs into euros will be carried out by dividing the numerical value in levs by the full numerical value of the official exchange rate, expressed in six digits, with all five decimal places. 
The resulting amount in euros will be rounded to two decimal places, starting from the third decimal place, according to the following mathematical rule: 
- If the third decimal place is less than five, the second decimal place remains unchanged; 
- If the third decimal place is equal to or greater than five, the second decimal place is increased by one. 
 
The conversion of financial instruments from levs into euros will be carried out in accordance with the rules described in the Euro Act as follows: 
The market operator or the investment intermediary organising a trading venue shall convert the market value of the book-entry financial instruments admitted to trading on a trading venue from levs into euros in accordance with the general rules on conversion and rounding of the Euro Act, unless a law or an act of the European Union establishes specific rounding rules for a particular financial instrument. 
The Central Depository shall automatically convert the nominal value of book-entry financial instruments recorded in the Central Securities Register from levs into euros, subject to the general rules on conversion and rounding. 
Within three working days prior to the date of introduction of the euro in the Republic of Bulgaria, all transactions and operations with book-entry financial instruments shall be suspended. Transactions and operations shall resume on the first working day following the introduction of the euro. All settlement systems shall ensure that transactions can be concluded in euro from that date. 
 
 1. Stock 
The conversion of the nominal value of shares and the conversion of the capital of commercial companies shall be carried out in such a way as not to affect shareholders’ rights and participation in the capital. 
The nominal value of one share shall be converted from levs into euros in accordance with the general conversion and rounding rules of the Euro Act. 
The total number of shares held by the client does not change after the conversion of the nominal value of one  share. 
 
2. Debt securities other than government securities (Bonds) 
The total principal amount of one issue of debt securities shall be converted from levs into euros in accordance with the general conversion and rounding rules of the Euro Act. 
The nominal value of one bond in euros shall be calculated by dividing the resulting total principal amount of the bond issue in euros by the number of bonds in the issue.  
The currency conversion does not change the rights and obligations of the issuer and the bond holders. 
 
3. Government securities (T-bills) 
The nominal value of all government securities denominated in levs will be converted once from levs into euros in accordance with the general principles and rules of conversion and rounding. 
The conversion of the nominal values for each individual account and each issue of government securities shall be carried out by the Bulgarian National Bank. 
In the registered certificates of ownership of government securities denominated in levs, the values will be deemed to be the values in euro, subject to the general rules on currency conversion and rounding. The certificates will be valid until the final settlement of the claims of the persons named therein arising from the ownership of the government securities of the relevant issue. 
The market value in euro of government securities originally issued in levs shall be determined on the basis of the converted nominal value of the government securities and shall be calculated per 100 units of nominal value with two decimal places. 
 
4. Collective investment schemes and national investment funds and alternative investment funds 
On the first working day following the date of the introduction of the euro in the Republic of Bulgaria, the net asset value (NAV) of a collective investment scheme in euro shall be calculated by converting the NAV in levs at the end of the previous working day in accordance with the general conversion and rounding rules set out in the Euro Act. The NAV per unit in euro shall be calculated by dividing the converted NAV as per the first sentence by the number of units outstanding and rounding the resulting value to the fourth decimal place as follows: 
   1. If the fifth decimal place is less than five, the fourth decimal place remains unchanged; 
   2. If the fifth decimal place is equal to or greater than five, the fourth decimal place is increased by one. 
The issue value of a unit in euro and the redemption price of a unit in euro shall be rounded in accordance with the second sentence of the above rule. 
The above rules shall apply to national investment funds and alternative investment funds respectively.   
 
For all other activities, services and products, the DZI will publish additional information on a step-by-step basis.