In connection with the Law on the Introduction of the Euro in the Republic of Bulgaria, promulgated in SG No. 70 of 20.08.2024 (the Euro Law), from the date of introduction of the euro as a legal tender in the Republic of Bulgaria, all BGN-denominated financial instruments owned by customers of the Bank will be automatically converted from BGN into EUR, according to the general rules and principles laid down in the Euro Law.

According to the general rules for currency conversion and rounding of the Euro Law, the currency conversion will be carried out by dividing the BGN numerical value by the full numerical value of the official EUR exchange rate, expressed in six digits with all five decimals.

The resulting EUR amount will be rounded to the second decimal digit in accordance with the mathematical rules for rounding:

• when the third decimal digit is less than 5, the second decimal digit remains unchanged;
• when the third decimal digit is equal to or greater than 5, the second decimal digit is increased by 1.

The conversion of BGN-denominated financial instruments into EUR will be carried out according to the rules set out in the Euro Law, as follows:

The market operator, respectively the investment firm organizing a trading venue, shall convert the market value of dematerialized financial instruments admitted to trading on a trading venue from BGN to EUR in compliance with the general rules for conversion and rounding under the Euro Law, unless a law or an act of the European Union provides for special rounding rules for the respective financial instruments.

Central Depository AD shall automatically convert the nominal value of dematerialized financial instruments entered in the central securities register from BGN to EUR, in compliance with the general rules for conversion and rounding.

Three business days prior to the date of introduction of the euro in the Republic of Bulgaria, all transactions in dematerialized financial instruments shall be suspended. Transactions shall resume on the first business day after introduction of the euro. All settlement systems shall enable carrying out transactions in euro from that day.

1. Shares

Currency conversion of the nominal value of shares, as well as currency conversion of the capital of commercial companies, shall be carried out in such a manner as not to affect the rights of shareholders, or their shareholding in the capital.

The nominal value of 1 share shall be converted from BGN to EUR according to the general rules for conversion and rounding of the Euro Law.

The total number of shares held by customers shall not change after converting the nominal value of 1 share.

2. Debt securities (bonds) other than government securities

The total nominal value of 1 issue of debt securities shall be converted from BGN to EUR according to the general rules for conversion and rounding of the Euro Law.

The nominal value of 1 bond in EUR shall be obtained by dividing the total nominal value of the bond issue, expressed in EUR, by the number of bonds in the issue.

The conversion performed shall not change the rights and obligations of issuers and bondholders.

3. Government securities (GS)

The nominal value of BGN-denominated GS shall be converted into EUR according to the general principles and rules for conversion and rounding.

The conversion of nominal values ​​for each individual account and each GS issue shall be carried out by the Bulgarian National Bank.

BGN values in registered GS ownership certificates shall be considered to be EUR values, applying the general rules for conversion and rounding. Such certificates shall remain valid until final repayment of all claims of the persons specified therein, arising from the right of ownership of GS from the respective issue.

The EUR market value of GS that were initially issued in BGN shall be determined based on the converted nominal value of such GS, and shall be calculated for 100 units with two decimal digits.

1. Collective investment schemes, national investment funds and alternative investment funds

On the first business day after introduction of the euro in the Republic of Bulgaria, the EUR net asset value (NAV) of collective investment schemes shall be calculated by taking the NAV in BGN at the end of the previous business day, and converting it into EUR in accordance with the general rules for conversion and rounding of the Euro Law. The NAV per 1 unit in EUR shall be calculated by dividing the converted NAV under the previous sentence by the number of units in circulation, and rounding the resulting value to the fourth decimal digit as follows:

• when the fifth decimal digit is less than 5, the fourth decimal digit remains unchanged;
• when the fifth decimal digit is equal to or greater than 5, the fourth decimal digit is increased by 1.

The EUR issue price per unit and the EUR redemption price per unit shall also be rounded as described above.

The above rules shall also apply to national investment funds and alternative investment funds, accordingly.