At the FSC Speaks Conference, industry leaders discussed how Bulgaria’s upcoming entry into the Eurozone and new regulations will affect individual investors’ participation in government securities (GS) and the broader capital market. A central topic was making it easier for citizens to invest in GS through the stock exchange, with average yields between 3.5% and 4.5%. These investments are tax-free and offer more accessible alternatives compared to low-interest bank deposits, potentially encouraging more people to invest and improve their financial literacy. The experience in Croatia was cited as an example, where 40,000 new individuals started investing in GS within two years of introducing similar options.
The conference also highlighted regulatory changes designed to reduce costs for companies already listed on the exchange. Petya Dimitrova, Director of Regulatory Regimes of Investment Activity, and Petya Hantova, Director of Supervision of Investment Activity at the Financial Supervision Commission (FSC), outlined measures aimed at lowering both time and expenses related to capital increases with shares of the same class. They noted that while administrative burdens would be reduced, clear rules for issuers would remain.
A standardized format for prospectuses is expected from 2026. This new format aims to provide a clearer structure for information disclosure and easier navigation for investors across Europe. Companies will have a transition period to adapt to these requirements.
Another significant change involves raising the threshold for preparing a prospectus for new issuances. Currently set at €8 million in Bulgaria, this threshold is expected to increase to €12 million across all European Union countries starting June 5. This adjustment is intended to align Bulgaria’s market with broader European standards and facilitate larger capital raisings by companies.
Denitsa Velichkova, Deputy Chair of the FSC, stated: “The role of the FSC is to ensure stable and predictable rules so that businesses can confidently plan their growth through the capital market. Bulgaria’s upcoming entry into the Eurozone makes this regulatory task even more important. Our goal is for companies and investors to face the transition with greater certainty, transparency, and trust.”
Panelists also addressed financial literacy challenges by referencing research indicating that only about one-third of those with higher education demonstrate good financial preparedness—highlighting a need for better education and more accessible investment products.
Manyu Moravenov, CEO of Bulgarian Stock Exchange who moderated a panel on regulatory development and Eurozone integration, said that improving access to GS via exchanges along with reducing costs for listed firms are steps toward a more open market: “The new opportunities to invest in GS through the exchange, the lower costs for already listed companies, and the clear prospectus rules are steps toward a more accessible, more transparent, and more dynamic market, benefiting both businesses and investors.”
Other participants included Desislava Laskova from FSC’s Investment Intermediaries Department; Dr Neda Muzho from Public Companies Supervision; as well as Denitsa Velichkova; Petya Dimitrova; and Petya Hantova.
Photos from the conference: here
