NEW BULGARIAN BANKNOTES AND COINS
is the meaning of the term ‘denomination of the Lev’?
|On July 5, 1999, the Bulgarian National Bank has proceeded with the
of the Bulgarian Lev, announced about a year ago.
From July 5, 1999 (Monday), the current Bulgarian Lev has been substituted by a new Lev** in a ratio of 1,000 to 1. That is, since this date 1000 old Levs are equal to 1 new Lev. The technological process of replacement of the current lev with a new one is called denomination.
* Syn. issue replacement, revalorization, redenomination.
** The terms ‘old’ and ‘new’ Lev are used provisionally in this text to allow for easier differentiation between the currency of the current issue, and of the 1999 issue.
|What will the impact
of denomination on prices be?
As an entirely technological process, the denomination of the Lev will not affect prices. To December 31, 1999, prices of all goods and services will be announced and shown in both old and new Levs. Administered prices of electricity, coal, heat energy, natural gas, water supply, telephone services, petrol, and exchange rates quoted by the BNB will be determined and announced only in new Levs.
Banks and exchange bureaux will operate with new and old Levs until December 31, 1999. If you want to avoid any misunderstanding, you are advised to use the services of licensed intermediaries.
Holders of credit and debit cards operating within the BORICA system (EUROPAY/ Master Card, VISA, American Express, and JCB) will be able to draw on their accounts and pay at POS terminals (terminals for EFTPOS). There will be a one off stop of the system at 0.00 hr. on July 5, 1999, for a central accounting adjustment, that will take 6 hours. At 6.00 hr. on the same day, the system will resume operation. The technical on-site adjustment of all ATMs and POS terminals to operate with new Levs will take about three months. Meanwhile, some of the machines will operate with old Levs. In such cases, the amount of the transaction will be shown on the screen and in the receipt in old Levs - OLD LEVS. Adjusted machines will show the amount in new Levs - LEVS.
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