Financial and business news from Bulgaria

Goranov: Debt limit up to 10 billion leva is not a blank check

The new debt limit of up to 10 billion leva is not a blank check, said Finance Minister Vladislav Goranov. He presented to the budget committee in parliament the parameters of the budget update. It is set that the limit on the new debt will be increased by BGN 2.2 billion. In order to finance the deficit in the treasury and the increase in the capital of the development bank, BGN 4.2 billion are needed. The remaining amount will be a buffer, Goranov explained, quoted by BNR.
“Words have been heard about a blank check, there is nothing blank in this check, because at the moment when funds enter the accounts of the Fiscal Reserve, they can leave the Fiscal Reserve for only three reasons for debt repayment, for financing operations, in the sense of acquiring shares and shares, as is the case with the capital increase of the Bulgarian Development Bank and Costs. Each of these aspects is predefined normatively,” he said.

The budget committee meeting is held in plenary because of measures to limit coronavirus contamination. Participants in the meeting wear masks and gloves.

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