The Bulgarian National Bank (BNB) joins the European real-time gross settlement system TARGET2 on February 1, BNB said in a press release Friday.

TARGET2 is the real-time gross settlement system for the euro. It is used for the settlement of central bank operations, large-value euro interbank transfers as well as other euro payments. It provides real-time processing, settlement in central bank money and immediate finality.

BNB said in a press release that joining TARGET2 is a significant step for Bulgaria's integration in the European financial market and settlement infrastructures.

The national system component of TARGET2, TARGET2-BNB includes the central banks, 16 other banks, and an auxiliary system for settlements of up to 50,000 euros designated to be effected at a particular set time.

When BNB joins the system, TARGET2 will have 23 EU member states, six of which are countries outside the Eurozone.

Being part of TARGET2 ensures state-of-the-art mechanisms for stability and non-interruptibility of the business processes, for monitoring and managing liquidity in euros, and cost efficiency which improves payment settlement processes and increases the speed and security of payments, says the press release.

Source: BTA