Sofia, Aug 3 (DPA) Bulgaria plans to replace the lev with Europe's single currency, the euro, in 2012 or 2013, Finance Minister Simeon Djankov told daily 24 Chasa Monday.

'We have a chance in the last year of the mandate to introduce the euro,' Djankov said.

Bulgaria will meet all criteria for the implementation of euro by the end of the year but if the budget deficit exceeds three percent 'it will put off our euro zone entry by two more years', he said.

Djankov, who recently took over the finance portfolio, also said that Bulgaria plans to apply for ERM2 - a two-year currency stability test for euro hopefuls - by the end of the year.

Bulgaria had initially planned to join the euro club in 2010, but was not able to meet inflation and budget deficit criteria.