Evolution and Present Status of Bulgarian Card Market

Bulgaria is a small South-eastern European country with a population of 8 million inhabitants in economic transition. During the bank crisis (1996-97) about 1/3 of all banks went bankrupt. On 5 July 1997, the Bulgarian government, jointly with IMF, introduced the Currency Board Arrangement, which lead to economic stabilization and growth. During the last four years the Bulgarian card market has expanded rapidly. The article reviews the evolution and the present status of the Bulgarian card market. The first trials to introduce cards in Bulgaria and to establish national card networks were made by three private banks. After 1992, the First Private Bank, the TouristSportBank, and the BalkanBank started their own networks; the first two based them on cards with a magnetic strip, while the BalkanBank used smart cards.