Bulgarian Budget 2011 to Include Controversial EUR 1 B Bond Sale

Bulgarian finmin Simeon Djankov once again snubbed Parliament by uttering one single sentence during the second reading debate on the state budget for 2011, which has dragged 9 hours now.

During that time, although present, Djankov took to the tribune only once to just affirm that an optional EUR 1 B sale of state bonds on the international markets at his discretion is "not unconstitutional."

The finance minister was provoked by Parliament Deputy Speaker from the opposition Socialist Party Georgi Pirinski, who claimed that the provision that the Council of Minister may allow the finance minister to issue up to BGN 2 B worth of bonds is in breach of the Bulgarian Constitution.

According to Pirinski, constitutional law has it that this power must be explicitly conferred to the Minister of Finance by an act of Parliament, and not by the Council of Ministers.

The debate is still continuing, but MPs have already adopted the budget framework, which previews a 3.6% growth.

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