by the capital surplus above the regulatory requirements and buffers ; profitability, measured by the amount of profit of bgn 1. 7 billion, guarantees a return on assets and capital, and is a serious source of internal support for balance sheets if necessary. in this context, the main challenges facing the banking sector to date can be summarised along three lines : the dynamics of the macroeconomic environment, the pro - cyclical behaviour of banks, and the potential risks to their profitability. the macroeconomic environment, as i noted at the beginning, is characterised by high uncertainty and the potential for escalation of risk scenarios. this implies the continuation of stress tests for the banking sector with various hypothetical negative scenarios. the banks'pro - cyclical behaviour is associated with continued credit growth. under upward credit dynamics, the capacity of borrowers to service their obligations is sometimes overestimated. that is why the supervisory policy will continue to aim at ensuring that credit institutions act conservatively. 3 / 5 bis - central bankers'speeches the profitability of the banks is put at risk along two lines simultaneously. first, due to the need to set aside additional provisions under a growing probability of non - performing loans ; and secondly, due to limitation of the banks'scope to generate income from core activities. for example, rising interest rates carry the risk of negative revaluations in banks'balance sheets. under these conditions the bnb will continue to follow a conservative prudential policy aimed at further strengthening the capital position of banks through a series of microand macro - prudential measures. therefore, at least in the short term, we see no reason to relax our prudential policy. the path to the euro area the path to the euro area has the potential to become a catalyst for processes that consolidate the political and macroeconomic framework. we have already witnessed such beginnings. most recently, the parliament adopted a decision with a near - constitutional majority to speed up the process of preparing for the introduction of the euro with a target date of 1 january 2024. it is difficult to find another topic today that receives such impressive political support. the fulfilment of the nominal, so - called maastricht, criteria – a mandatory condition for joining the euro area – implies the implementation of policies that are good for the country, even outside the context of the euro area, and thus would help to consolidate the macroeconomic framework. these policies are aimed at curbing and reducing inflation

and the undertakings, except micro - undertakings, which are listed on a regulated market in the eu. therefore, it is envisaged that for the financial years starting from 1 january 2026 small and medium - sized undertakings must also include in their reports information in compliance with the requirements laid down in the directive. some of these requirements are related to undertakings'regular reporting on their environmental protection activities and the impact of their business on society. our sustainability discussion should also touch on the larger topic of the completion of our country's integration into the large european family by the introduction of the euro in 1 / 2 bis - central bankers'speeches bulgaria. for me, as a specialist in the academic and financial spheres, it is of utmost importance to speak to you, the certified public accountants in bulgaria, about our progress on this topic as i highly value your expertise and experience, and i hope that, through you, the information on the various aspects of the preparations for the euro changeover will reach as many specialists as possible. in order to raise awareness of the euro topic, information materials with questions and answers on this issue have already been published on the websites of the bulgarian national bank and the ministry of finance. there you can find information on the euro area, the european central bank ( ecb ), the criteria for euro adoption and its benefits, as well as technical information on the exchange and conversion from levs to euro. a dedicated website on the euro is about to be put up, describing in details the benefits of the euro adoption, good practices and the experience of other countries that have introduced the euro, the currency exchange, the dual price display period, the security features of euro banknotes and euro coins, etc. the organisational, technical and regulatory activities related to the introduction of the euro are running in accordance with the national euro changeover plan of the republic of bulgaria. a draft law on the introduction of the euro has been prepared, which establishes the rules and procedures related to the euro adoption in bulgaria. this law stipulates that the conversion of accounts from levs to euro will be automatic and free of charge on the day of introduction of the euro in bulgaria. during the first month as of the date of the euro changeover, the lev and the euro will circulate simultaneously, both as legal tender. when this one - month period expires, the euro will become the sole currency of our country. full participation in the economic and monetary union