Kristalina Georgieva Secures Second Term as IMF Chief
Bulgaria's Kristalina Georgieva has been appointed for a second term at the helm of the International Monetary Fund (IMF)
Politicians, who call for an urgent deal with the International Monetary Fund, should not forget that if a healthy country asks IMF for help, then the market decides that the condition of the country is much worse than they thought before.
This is the opinion of Georgi Angelov, senior economist with the Open Society Institute Sofia, who spoke in an interview for Novinite.com.
Angelov was approached to comment the call of the opposition rightist GERB party, tipped to win a July 5 parliamentary election, for an urgent deal with the International Monetary Fund (IMF).
He conceded that it might be easier for a government to do the necessary reforms with some push from IMF, but stressed that "it is always better for a government to do the reforms by itself".
"The problem is that when a country followed imprudent policies, it loses credibility and markets are more suspicious. After that, it is too difficult to rebuild that credibility again, even with IMF help," Anguelov said.
GERB, which according to all opinion polls is likely to win most votes but not an outright majority in July, said they will immediately sign an agreement with the IMF to stand as a guarantee for the country's financial stability if they come to office.
They said they would seek to start immediate talks with the IMF and not for a precautionary, but for a stand-by agreement.
Bulgaria has already entered recession with its economy shrinking 5% from January to March and contracting 1.6% in the fourth quarter on a quarterly basis.
Bulgaria's gross domestic product (GDP) contracted by 3,5% in the first quarter of 2009 on an annual basis, the first time that the country's GDP marked a drop year-on-year since the financial and economic crisis in 1997.
Bulgaria currently operates in currency board regime and the lev is pegged to the euro.
FULL text of the interview with Georgi Angelov READ HERE
We need your support so Novinite.com can keep delivering news and information about Bulgaria! Thank you!
The price of retail lamb in Bulgaria has surged by 8.4% on an annual basis, according to statistics released by the Ministry of Agriculture and Food, with data sourced from SAPI indicating an average price of BGN 25.27 per kilogram as of April 10
According to recent data from the Confederation of Independent Trade Unions of Bulgaria (CITUB), the financial strain on Bulgarian households continues to intensify
Experts suggest that Bulgaria's admission to the Eurozone is more realistic in January 2026
February witnessed a surge in remittances from Bulgarians residing abroad, reaching a remarkable EUR 110.5 million, marking the highest value since last July
Amidst financial fluctuations and strategic fiscal decisions, Bulgaria's Minister of Finance, Lyudmila Petkova, unveils the nation's robust fiscal reserve, standing tall at BGN 10.9 billion as of April 18th
Sofia, the vibrant capital of Bulgaria, is experiencing a surge in its economic landscape, surpassing the average European standard of living, according to senior researcher Peter Ganev from the Institute for Market Economics
UN Happiness Report: Bulgaria's Astonishing Leap in Rankings
Bulgaria: 3 Regions With Lowest Life Expectancy - EU Report 2022