Bulgarian businesses against IMF conditions

Sofia Echo, 13 October 2005

On the day that the International Monetary Fund mission arrived in Bulgaria, representatives of national businesses said that they opposed most of the fiscal measures proposed by the IMF.

The employers union, together with the bankers association, is to demand a discussion with IMF representatives.

According to Bulgarian business representatives, no European country has a budgetary surplus equal to three per cent of GDP. The IMF is demanding a significant surplus by the end of the year, based on high income and cutting spending, Sega newspaper reported.

IMF mission leader for Bulgaria Hans Flickenschild said that he would not change his position on Bulgarian fiscal policies. The high deficit on the current account demands strict fiscal and credit policies, Flickenschild said.

The IMF continues to insist that Bulgaria should pursue a budget surplus, instead of a balanced budget with no surplus and no deficit. The IMF will have to carry out difficult negotiations with the Bulgarian Cabinet. This was a question of political will, Flickenschild said.