Outgoing FinMin Assuages Fears Bulgaria Is Fiscally Unstable

Bulgaria's finances are stable and the fiscal reserve is in good shape, according to resigned Financial Minister, Simeon Djankov.

Djankov made the statement for the media Tuesday, while on his way to the emergency sitting of the Consultative Council for National Security at the Presidential Office.

According to his estimates, which have been included in the report for the President, the fiscal reserve currently amounts to BGN 4.1 B while another BGN 600 M are expected to be reimbursed by Brussels for advance payments.

Djankov further explained that compared to the beginning of the term of the Cabinet in 2009, all overdue amounts have declined significantly – by 83% on central level, and by 23% on the local one.

Regarding separate ministries, in the Ministry of Defense, the amount of overdue bills is down from BGN 190 M in 2009 to BGN 68 M in January, 2013; in the Regional Ministry these amounts are BGN 238 M down to BGN 3 M, respectively; in the Interior Ministry they are BNG 45 M and BGN 15 M.

The former Finance Minister stressed there were no reasons to make speculations about the fiscal stability of Bulgaria as it is currently one of the most fiscally stable countries in Europe.

He added all attempts to destabilize the State were politically motivated and Socialists are leading to country to bankruptcy as they have done it many times in the past.

Earlier Tuesday, the Member of the European Parliament from the Bulgarian Socialist Party, BSP, Iliyana Yotova asked from Chief Prosecutor, Sotir Tsatsarov, to ban Djankov from leaving the country until the fulfillment of the planned budget becomes clear.

Last Thursday, Bulgaria's Parliament approved the resignation of the government of Prime Minister, Boyko Borisov, and his ruling Citizens for European Development of Bulgaria party, GERB, amidst unprecedented since 1997 protest rallies against unbearable utility bills and wide-spread poverty that turned into a civil unrest against the political model of ruling the country.

Djankov, however, submitted his resignation prior to that – on Monday - in what many interpreted as him being used as the scapegoat in attempts to tame people's discontent.