Bulgarian FinMin: Euro Can Go, We're Pegged to Deutsche Mark

Bulgarian Finance Minister Simeon Djankov is calm since the Bulgarian lev is actually tied to the "deutsche mark". Photo by BGNES

Bulgaria should not be worried about its currency board in the event of a collapse of the euro, according to Bulgarian Finance Minister Simeon Djankov,

Djankov commented on the euro zone debt crisis in an interview for Reuters cited by the press service of the Bulgarian Finance Ministry.

In it, he stressed that Bulgaria is not worried about the board that pegs the Bulgarian lev to the euro.

"The [Bulgarian] government is not worried about that peg because it is actually to the Deutsche mark and - in the event of any changes to the euro zone - it would continue to follow whatever Germany used," Djankov is cited as saying.

The currency peg means interest rates must track euro zone rates, leaving fiscal policy as the government's main tool to influence the economy.

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