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text sizeIMF Forecasts 0.8% GDP Growth in Bulgaria
Bulgaria should not use resources from the so-called Silver Fund and instead issue euro obligations to cover the coming installments on the foreign debt and thus guarantee the fiscal reserve, is the counsel in the latest report of the International Monetary Fund written after the Fund's latest mission to Bulgaria from May 2 to 9th.
"As with the current situation, it would be most wise to raise the level of the fiscal reserve and avoid its decrease," the IMF wrote.
The Silver Fund is a part of the fiscal reserve, among its main function is guaranteeing the stability of the fisc with regard to pension payments in a future doomed with growing numbers of pensioners and far from positive demographic growth.
IMF commentaries come as a reaction to Bulgarian Government's intent to invest 30% of its resources into state securities.
"The sensible policies and strong buffers have secured Bulgaria sustainability in the times of the world financial crisis," Bulgaria's Minister of Finance, Simeon Djankov quoted the report in Parliament. However, it is the Government's opinion that Bulgaria's growth is still too slow mostly due, as experts believe, to foreign political factors. The GDP in the country will reach 0.8% in 2012 and 1.5% in 2013, the IMF forecasts.
Bulgaria needs more decisive structural reforms for a higher growth, the IMF document reads. The IMF forecasts an inflation in the framework of 2%. The IMF recommends that Bulgaria starts social programs with Euro funds or with money which will come if the grey economy comes to light. The reforms for an increase of VAT collection give good fruit and deserve congratulations, the IMF document reads. The pension reform which was recently adopted will bring significant savings of 4% from the GDP in a mid-term plan, Bulgaria's Finmin stated. "We have undertaken activities for the decrease of the additional risks for the budget on behalf of the state-run companies in the energy and transport sectors. We also have to find a solution for the increasing fiscal pressure on the expenditures for healthcare in a mid-term aspect," Mr Djankov said further. "The bank system in Bulgaria is well capitalized, with good liquidity and with an effective bank supervision," Simeon Djankov underlined as he did not miss to point out that the IMF reports for the bigger part of the EU countries are more negative.
"As with the current situation, it would be most wise to raise the level of the fiscal reserve and avoid its decrease," the IMF wrote.
The Silver Fund is a part of the fiscal reserve, among its main function is guaranteeing the stability of the fisc with regard to pension payments in a future doomed with growing numbers of pensioners and far from positive demographic growth.
IMF commentaries come as a reaction to Bulgarian Government's intent to invest 30% of its resources into state securities.
"The sensible policies and strong buffers have secured Bulgaria sustainability in the times of the world financial crisis," Bulgaria's Minister of Finance, Simeon Djankov quoted the report in Parliament. However, it is the Government's opinion that Bulgaria's growth is still too slow mostly due, as experts believe, to foreign political factors. The GDP in the country will reach 0.8% in 2012 and 1.5% in 2013, the IMF forecasts.
Bulgaria needs more decisive structural reforms for a higher growth, the IMF document reads. The IMF forecasts an inflation in the framework of 2%. The IMF recommends that Bulgaria starts social programs with Euro funds or with money which will come if the grey economy comes to light. The reforms for an increase of VAT collection give good fruit and deserve congratulations, the IMF document reads. The pension reform which was recently adopted will bring significant savings of 4% from the GDP in a mid-term plan, Bulgaria's Finmin stated. "We have undertaken activities for the decrease of the additional risks for the budget on behalf of the state-run companies in the energy and transport sectors. We also have to find a solution for the increasing fiscal pressure on the expenditures for healthcare in a mid-term aspect," Mr Djankov said further. "The bank system in Bulgaria is well capitalized, with good liquidity and with an effective bank supervision," Simeon Djankov underlined as he did not miss to point out that the IMF reports for the bigger part of the EU countries are more negative.
Bad Credits in Bulgaria Are Covered with Reserves
