Ministry of Finance: Government’s policies aimed at growth and employment will result in a growth of the Bulgarian economy

Bulgaria's economy will expand towards 2% in 2014 resulting from the Government's policies aimed at growth and employment. This is what Finance Minister Petar Chobanov told the Reuters Central and Eastern Europe Investment Forum. “The results for Q2 of this year show that we do not have any reasons to expect a recovery of the economy”, he said and added that economic growth for 2013 is expected to be around 0.6%, with low investment being the key problem. According to the Minister, social protests have also had an adverse impact on the country's economic development. Minister Chobanov added that an objective for the next year will be to achieve a budget deficit below 2% of GDP, as much as the one planned for this year. The Government has revised the fiscal target for 2013 from 2% down to 1.3% of GDP to spur the economy and help the needy, Reuters reminded.

“Bulgaria may seek up to about EUR 400 million by the end of this year in a yet to be decided syndicated loan or Eurobond”, added Minister Chobanov. The country will have to go on the international markets next year to refinance the global USD-denominated bond issue of around USD 1.1 billion falling on January 2015. Mr. Petar Chobanov assured that Ministry of Finance experts will start keeping an eye on market conditions as early as the beginning of next year. With a government debt level of 17% of GDP Bulgaria is among the least indebted countries as well as among the EU members of lowest budget deficit, says the Reuters analysis.

The Minister of Finance Petar Chobanov defines the political situation in the country as a challenge which helps the Government to remain focused, work in a transparent way and present measures and reforms that would restart the economy. According to him, the outcome of these measures will be seen very soon and this will lead to an improvement of the business environment.