Financial and business news from Bulgaria

Menda Stoyanova proposes new ceiling for external loans - up to 10 billion euros

6 -7% contraction of the economy is the bad case scenario, we rely on 3%
To also provide money through external government loans from international financial institutions and to increase the limit under the programme for bonds that can be issued - from 8 to 10 billion euros.

These proposals were submitted by the head of the budget committee Menda Stoyanova between the first and second reading of the budget update.

BNB can provide credits to the state at the expense of purchases of special drawing rights by the IMF, it proposes. The decision of the management board must be taken no later than 7 days after the corresponding purchase of the rights, the term for the use of the loan by the state is 90 days, and after its expiration, the law of the state on the unused part is repaid. The principal and interest payments should be within the limits of the corresponding payments from the BNB to the IMF, she writes.

We do not have a debt of BGN 10 billion, but a request for 7.8 billion, Stoyanova explained to bTV. And remind me that we are second in Europe in the lowest debt.

According to the gloomest forecast, the Bulgarian economy will shrink by 6 -7%. At the moment, however, there is talk of contraction by 3 per cent. Unemployment has increased a lot, Menda Stoyanova admitted, but this was also due to Bulgarians returning from abroad who registered on the exchange.

After Parliament Speaker Tsveta Karayancheva and Stoyanova described the freezing of parliamentary salaries towards December 2019 levels as “populist”. Karayancheva apologized for her words after the prime minister demanded a freeze. The GERB group will propose at its next meeting that its deputies donate half of their salaries to the donation account of the health ministry, Stoyanova announced.