European Commission Confirms Bulgaria Meets Inflation Criteria Ahead of Euro Adoption
The European Commission has confirmed that Bulgaria meets the inflation criterion necessary for joining the eurozone
Even though the spike in fuel prices and food products is expected to continue to fuel inflation in Bulgaria, the head of the International Monetary Fund (IMF) mission to the country remains upbeat.
"Inflation is a serious problem, but over the last month we saw it slow down its pace. We don't expect prices to increase significantly above the current levels," Catriona Purfield, head of the International Monetary Fund (IMF) mission to Bulgaria, said in an interview for Capital weekly as she wrapped up her visit here.
Purfield also stressed the IMF positive evaluation of Bulgaria's banking system.
According to her the country's banking system continues to weather the economic crisis well and banks remain well-capitalized.
The International Monetary Fund expects higher food and fuel prices to increase inflation to 4.25% in 2011, before easing to 3% in 2012.
The lender projects Bulgaria's economy to grow by 3% this year and sees expansion of 3.5% in 2012 thanks to exports, but has urged the government to persistently implement structural reforms to improve spending efficiency.
Recent analysis by the financial portal "Moite pari" indicates that interest rates on bank deposits are starting to climb, particularly noticeable among smaller banks over the past year
Inflation in Bulgaria recorded a slight uptick in May 2025
Bulgaria has secured an additional 300 million leva in debt from the domestic market, according to the results of the latest government securities auction held by the Bulgarian National Bank (BNB)
In April 2025, Bulgaria recorded a current account deficit of 724.9 million euros, marking the largest monthly shortfall since January 2022
With Bulgaria set to adopt the euro on January 1, 2026, questions are surfacing about whether the country might face financial risks similar to those that led to Greece’s debt crisis
The introduction of dual pricing in leva and euro is progressing smoothly and, in some cases, even ahead of the planned timeline in Bulgaria
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