The Bulgarian currency is lev (BGL), or plural leva, and is divided into 100 stotinki (st). However, due to inflation, the stotinki coins have been eliminated.

Leva coins are for 2, 5 and 10 leva and notes are in denominations of 20, 50, 100, 200, 500, 1,000, 5,000 and 10,000.

The lev has a fixed rate of exchange against the Euro: € 1 = 1.95 lev.

After the fall of Communism in 1989, new versions of the leva notes were printed and all notes dated prior to 1977 were declared worthless. So be sure to check for the Bulgarian lion watermark to ensure you are not cheated!

The deregulation of the lev in the foreign exchange market has increased the popularity of other currencies, in particular the US dollar..

Currency Regulations Upon Arrival and Departure

Be aware that entering Bulgaria with the equivalent of 8,000 leva (approx. £2,780 or € 3,990) or more, legally obliges you to declare it to Customs upon arrival.

The movement of foreign currency is essentially unlimited on the condition that you do not export more than you declared upon arrival.

The import and export of local currency is prohibited. Therefore, you can exchange local currency at the airport prior to departure, upon production of a bordereaux (a receipt given to you at the official bureaux de change or at some ATM machines).

Note: We advise you to check the currency regulations prior to your departure, as they may change.

Credit and Debit Cards

Credit cards are accepted only in major cities, mainly in the capital, Sofia. Cash remains the predominant form of payment, however, at some big restaurants and shops, car hire and in larger tourist hotels American Express, Diners Club, Mastercard and Visa may be accepted.

ATM machines are a rarity throughout most of the country, although they are increasingly seen in the major cities and at the Black Sea resorts.

Travellers Cheques

Not all banks accept travellers cheques and those that do, often charge a commission of 5%. However, travellers cheques are occasionally accepted in major hotels and restaurants. To avoid additional exchange charges, you would be well advised to take travellers cheques in UK Sterling or US dollars.

Banks

The main banks in Bulgaria are: Union Bank, ING Bulgaria, SG Express Bank Sofia, First Investment Bank and Demirbank AD.

Opening hours are from Monday to Friday, 09:00 - 16:00 hrs.

Bureaux de Change

It is best to obtain foreign exchange from a bank as some bureaux de change, despite honestly displaying their current rates of exchange, can be guilty of the giving misleading rates of exchange to unsuspecting tourists. Always opt for a bank where possible.

Make sure you keep the bordereaux receipt with you in case you wish to exchange it for your own currency upon departure.

The Black Market

Black market traders vie with the banks, airport shops, taxi drivers and bureaux de change for trade, usually in US Dollars.

Black ¬market currency exchanges are to be avoided as their rates fluctuate randomly and they cannot supply you with the bordereaux receipt necessary to obtain a proper exchange back for your money upon departure.

General Overview

In the HIFX Global Property Hot Spots report, it was estimated that British overseas investors bought 77 % more property in Bulgaria in 2005 than they did the year before.

Meanwhile, amendments to the Tourism Act were approved in November 2005, which abolished Bulgaria's "double pricing" system, in which foreigners were charged higher prices than Bulgarians in resorts and restaurants. This met with much criticism from nationalists who see the amendments as pushing up general prices.

According to experts at the International Monetary Fund (IMP), if Bulgarian banks do not begin to control the rise in the amount of loans they are granting, the country will experience a currency crisis. Credit growth has lead to higher property prices and a boom in investment, in turn creating a higher demand for imports and a rise in inflation.

Increased international flight routes to Bulgarian airports were opened last year, while Sofia Airport is expecting a new terminal in 2007. Yet again, the effect on property investors is likely to be significant. The enormous increase in tourism has created a healthy economy and prompted many foreigners to invest in the country.

According The Official Agency on Tourism, foreign tourists spent €1.661 billion in Bulgaria between January and September 2005, increasing revenues by around 10% compared to the same period in 2004.

However, aware of the boom in construction in Bulgaria, the government is currently considering banning building work between May 1st and October 15th this year. This reflects a sensible, forward-thinking attitude to property investment that will do a great deal to prevent the economic crisis, not to speak of poor-quality construction.

About the author:

Tina Andlaw lives in Spain and regularly contributes articles to Sunseeker Homes (http://www.sunseekerhomes.com) the Spanish property information website.