`Amendments to some articles of the Bulgarian National Bank (BNB) Act are necessary to back up its greater independence from the new government`, said Svetoslav Gavriiski, governor of the Central Bank, after his meeting with outgoing PM Kostov yesterday. The European Central Bank defined the current Act as good one, but the amendments as pressing, Gavriiski pointed out. To him, the strong U.S. dollar won`t jeopardize the servicing of the foreign debt. `In the budget the dollar is fixed at 2.11 levs, but higher interests are envisaged to compensate the difference`, he elaborated. This month Bulgaria is to pay $200 million on Brady bonds and till the end of the year-$500 M on foreign debt. The foreign debt payment in 2002 totals to $1.2 Bln. Gross foreign debt-to-GDP ratio stood at less than 80%. In 2 or 3 years the payments to the Paris club are to come to an end and then will start the servicing of the Brady bonds principals. `Thus the foreign debt will be reduced also in volume. The reform in the financial system is successful and the proof is the stability of the currency board`, the banker stressed. The exchange currency reserve now exceeds DEM 7 Bln., up from DEM 2.8 Bln. of four years ago when the currency board has been introduced, and it continues growing up.

We need your support so Novinite.com can keep delivering news and information about Bulgaria! Thank you!