Since 1 January 2026, every mortgage agreed in Bulgarian leva has been held in euro. The conversion happened automatically — no annexes, no branch visit, no new contract. Which is exactly why many borrowers have never looked at what actually changed. Here is what the law says, how the figures were calculated, what stayed the same, and five things worth checking in your loan agreement and repayment schedule.
What the law says
The rules are set out in Bulgaria's Euro Adoption Act (Закон за въвеждане на еврото в Република България), passed in 2024 and applicable from 1 January 2026, and in the EU regulations on the introduction of the euro. The key principles for loans are:
- Fixed rate: €1 = BGN 1.95583. The rate is not rounded or truncated — all five decimal places are used (Art. 12).
- Rounding to the cent. The result is rounded to the second decimal place based on the third: below 5 rounds down, 5 or above rounds up (Art. 13).
- Continuity of contracts. The change of currency does not, by itself, alter any clause, term or obligation, and is not grounds to terminate or renegotiate the contract.
- The interest rate cannot rise because of the conversion. For a variable rate, the new rate may not be higher than the rate before the euro was introduced (Art. 44(3)). A fixed rate stays as agreed.
How your loan was converted
The bank divided every lev amount by 1.95583 and rounded to the cent. For example:
| In leva | In euro |
|---|
| Outstanding principal BGN 200,000.00 | €102,258.38 |
| Monthly instalment BGN 1,000.00 | €511.29 |
| Monthly fee BGN 30.00 | €15.34 |
This is neither a "reduction" nor a "price rise" — it is the same obligation expressed in a different currency. The number of remaining instalments, the payment date, the loan term and the collateral (the mortgage) all stay the same. A mortgage registered for an amount in leva continues to secure the debt in euro — no new registration is needed.
Because each amount is rounded separately, the sum of the instalments may differ from the balance by a few cents. That is normal, and banks even it out within the repayment schedule.
What happened to the interest-rate indices
This is the only substantive technical change. Many lev loans had a variable rate linked to a Bulgarian index — the Bulgarian National Bank's base interest rate (ОЛП), the bank's own base rate, or an index of average deposit rates.
- The BNB base rate is no longer published from 1 January 2026. Banks replaced it with a euro benchmark — for example €STR or one-month EURIBOR, depending on the bank.
- Banks' own base rates in leva were replaced with their euro equivalents.
- On replacement, a corrective component was added so that the total interest rate on the replacement date stayed the same and was in no case higher.
From now on, though, your rate will move with the new index. If your loan used to track a slow-moving Bulgarian index, it may now respond faster to European Central Bank decisions — up or down.
Five things to check
- The outstanding principal. Take your last statement in leva from December 2025, divide the balance by 1.95583 and compare it with your first statement in euro. A difference of more than a cent or two is worth a question.
- The interest rate. Compare the annual rate before and after 1 January. A fixed rate must be identical. For a variable rate, check which index now applies, what the corrective component is and what the margin is. Your bank was required to notify you of this.
- The new repayment schedule. Ask for it if you have not received it. Check the number of remaining instalments, the date of the final payment and the split between principal and interest.
- Fees. The fees in the bank's tariff were also converted. Check that no new or higher charges have appeared in connection with the conversion — the law prohibits the introduction of the euro from leaving consumers worse off.
- Insurance. Property insurance and life cover linked to the loan are also now in euro. Check the sum insured and the premium — especially if the policy renews automatically.
If something does not match
Start with a written query to the bank — usually there is an explanation (interest accrued for part of a month, for example). If the answer does not satisfy you, you can complain to the competent authorities — the Commission for Consumer Protection or the Bulgarian National Bank. Keep your last few statements in leva and the first ones in euro.
What stayed the same — and what got easier
- All your rights under the Real Estate Credit Act — including early repayment and refinancing — are unchanged. If you are considering refinancing, see our refinancing guide.
- The currency question has gone. Anyone with a euro loan and an income in leva no longer has a mismatch between the two.
- Comparing offers is simpler — every bank now lends in one currency. How to compare two offers by APR and the ESIS is covered in our guide to comparing mortgage offers.
To see what a new loan would look like on today's terms, try our mortgage calculator.
In short
- Lev loans became euro loans automatically, at 1.95583, rounded to the cent.
- The term, instalments, collateral and conditions are unchanged; a fixed rate is unchanged, and a variable rate is no higher than before.
- Bulgarian indices (such as the BNB base rate) were replaced with euro benchmarks plus a corrective component — from now on your rate follows the new index.
- Check the balance, the rate, the repayment schedule, the fees and the insurance — once, carefully.
If you would like us to go through your loan agreement and repayment schedule with you, or you are thinking of refinancing or selling a mortgaged property, call us or come into the office — we will help you make sense of the numbers.
This information is general and does not replace advice from your bank or a lawyer. Verified as of October 2026.
