On 20 December 2024, a bill amending and supplementing the Payment Services and Payment Systems Act (BASPSPSA) was submitted to the National Assembly of the Republic of Bulgaria. The new bill aims to prepare the payment services and systems infrastructure for the measures outlined in the National Plan for the Introduction of the Euro in Bulgaria. These amendments will adapt the country's legal framework governing payment supervision and the provision of services for the period following Bulgaria's accession to the euro area.
Given the upcoming introduction of the euro as the currency in Bulgaria, technical changes are anticipated in the legislative texts that indicate values in BGN. These changes are in accordance with European legislation that contains monetary values, and accordingly, these values will be converted into euros according to EU guidelines.
The amendments to Article 87 of the Payment Services and Payment Systems Act (PSPSA) aim to retain the option provided by Article 86 of Directive (EU) 2015/2366, even after the introduction of the euro in Bulgaria. According to this Directive, Member States may establish shorter deadlines for the execution of national payment transactions than those generally stipulated in the Directive.
From the moment the euro is introduced as the currency in Bulgaria, the Bulgarian National Bank (BNB) will cease operation of the Real-Time Gross Settlement (RINGS) payment system. Consequently, Section III of Chapter Eight of the PSPSA, along with item 24a of § 1 of the Supplementary Provisions of the Act, will be repealed. Additionally, the systematic placement of Article 148a, which governs the clearing and settlement of card payment transactions, has been adjusted.
The text of Article 153 includes adjustments to align the provisions with the rules of the Trans-European Automated Real-time Gross Settlement Express Transfer (TARGET) system. To harmonize the supervisory practices of the BNB with those of the Eurosystem, Article 154, paragraph 2 of the PSPSA includes additions covering the entities supervised by the BNB. Additionally, a new Section IVa is added to Chapter Nine of the PSPSA, which regulates the supervision of electronic payment instruments, schemes, and agreements. These changes will ensure that the BNB effectively implements the Eurosystem Framework for the Supervision of Electronic Payment Instruments, Schemes, and Agreements (PISA framework).
The specified amendments and supplements to the PSPSA must come into effect on the day the euro is introduced as the official currency in Bulgaria.
In addition to the above-mentioned amendments to the PSPSA, changes are also incorporated to implement Regulation (EU) 2024/886, which aims to ensure efficient and competitive instant credit transfers in euros, as well as Regulation (EU) 2023/606, which establishes favorable conditions for the offering of shares or units of European long-term investment funds (ELTIF) to retail investors. The draft law also includes amendments to improve the legal framework and ensure effective payment supervision.