Foreign Deposits Slump Blamed for Bulgarian Payment Account Deficit

The direct foreign investments in Bulgaria for the first 5 months of 2010 are EUR 253 M – a 79% decline on annual basis. File photo

The withdrawal of bank deposits from non-resident foreign companies and individuals is one of the main factors for the Bulgarian payment account balance deficit, the Bulgarian Central Bank (BNB) data shows.

In January - May, 2010 the deficit is EUR 1.07 B, while during the same time in 2009 it has been EUR 1.03 B with a May deficit of EUR 32 M.

The BNB data is preliminary and subject to changes.

By the end of May, the financial account has a deficit of EUR 998 M for the first 5 months of 2010 while for the same period of 2009 the account had a surplus of EUR 399 M.

From January to May, the “non-resident” deposits are down by EUR 829 M, while the decrease in those deposits in January – May 2009 was EUR 63 M. May 2010 is the month when the deposits slump has been the most significant – EUR 369 M compared to an increase of EUR 135 M for May 2009.

The data about direct foreign investments shows that for the first 5 months of the year they amount to EUR 253 M – a 79% decline on annual basis. Those direct investments in May, 2010 are estimated at EUR 68 M compared to EUR 256 M in May, 2009.

The current account deficit is EUR 708 M for January – May, 2010 and it was EUR 2.4 B in 2009 or a decline of 70% on annual basis.

In May, 2010, the current account deficit is EUR 3.8 M compared to EUR 366 M in May, 2009.

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