The Finance Minister pointed out that Bulgaria has to pay back a total of 12 billion Bulgarian levs by end of 2017, but the country has already spent the money.
The Dealer Agreement between Bulgaria and four banks selected as agents for a mid-term bond program by the end of 2017 worth $9.3 billion — Citigroup Global Markets Limited, HSBC Bank Plc, Societe Generale, and UniCredit Bank AG – was signed on February 6.
“As long as the budget is plagued by a deficit, there will be debt too,” Goranov said in Parliament on Wednesday during debates on the Dealer Agreement, according to the local press.
Goranov claimed that Bulgaria had been living on borrowed money since 2009. He pointed out that now is the time to pay the debts since the country had failed to stick to the principle of spending as much as it was earning.
Bulgaria’s economic growth slowed in the fourth quarter of 2014, according to the National Statistical Institute. The national economy grew by only 1.2 percent year-on-year and by 0.3 percent on quarterly basis. The slowdown stems from shrinking investments and a weakening trade balance.
The expenditure overruns of 2.5 billion Bulgarian levs had been approved through the adoption of the 2015 state budget.
[sputniknews.com]
25/2/15
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Bulgaria bases policy on national interests, EU values, Foreign Minister tells Russian ambassador
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Bulgaria’s Parliament ratified on February 25, at first and second reading, the Cabinet’s agreement with four foreign banks to issue bonds of up to eight billion euro on foreign markets between 2015 and 2017...
ReplyDeleteThe ratification bill was seen as teetering on knife’s edge, but passed with a wide majority after it was backed by two opposition parties. At first reading, the bill won 161 votes in favour, and at second reading it was backed by 159 MPs...................http://sofiaglobe.com/2015/02/25/bulgarian-mps-ratify-cabinets-8b-euro-debt-plan/
25/2/15