We have moderated our estimate of Bulgaria's economic contraction in 2020 to 4.5%, since domestic demand has been more resilient than we expected to the impact of the pandemic. We expect relatively moderate fiscal deficits this year and next, followed by swift consolidation, supported by EU financial assistance. The Bulgarian lev was included in the European Exchange Rate Mechanism (ERM) II and Bulgaria joined the EU Banking Union in July this year. We expect ultimate accession to the eurozone could strengthen monetary arrangements, but we expect this process will take several years. We are affirming our 'BBB/A-2' sovereign credit ratings on Bulgaria and maintaining the stable outlook. On Nov. 27, 2020, S&P Global Ratings affirmed its 'BBB/A-2' long- and short-term
