Novinite.com
09 Jun 2025

Dimitar Georgiev, a market analyst with one of Bulgaria's top investment firms, believes the adoption of the euro will spark greater investor interest in Bulgarian government debt and lower the price of Bulgarian bonds. Following positive endorsements from the European Central Bank and the European Commission affirming Bulgaria's readiness to join the eurozone on January 1, 2026, Georgiev calls this a crucial milestone for the country's capital markets.

Foreign investors have been eagerly awaiting this green light, as shares of Bulgarian companies currently trade only in leva, creating a barrier for international players, Georgiev explains.

"We?re already seeing growing enthusiasm from all investor groups - both individual and institutional - especially foreigners who have begun opening accounts and trading with us," he notes.

The appetite for Bulgarian bonds is notable. Because the country's government debt is relatively small in nominal terms, yields have been low. With Bulgaria's credit rating set to improve after eurozone entry, interest in government debt is expected to rise, which will, in turn, reduce the cost of debt servicing for both the government and the public, according to Georgiev.

He also predicts a wave of interesting IPOs as valuations of Bulgarian firms become more accurate and appealing. This shift is likely to encourage more local companies to list publicly on the stock exchange.

"Shares in Bulgaria are very cheap at the moment. The valuations are undervalued, but that will change once we join the eurozone," Georgiev adds.