Ex FinMin: Bulgaria Heads for Disaster with No Fiscal Reserve

Plamen Oresharski, Bulgarian Minister of Finance (2005-9) and current socialist MP. Photo by BGNES

By the start of 2013 Bulgaria will have spent its entire fiscal reserve due to the policies of center-right GERB cabinet, argued former Bulgarian Minister of Finance Plamen Oresharski.

In an interview for the Bulgarian National Radio Sunday, Oresharski was critical of his successor Simeon Djankov's approach of spending from the reserve and failure to gather adequate revenue.

"At the start of next year, after Bulgaria pays dues on sovereign bonds, our country will no longer have any fiscal reserve," said the ex-FinMin and current Bulgarian Socialist Party MP.

"After that, except for funds that are geared for specific purposes and limited use, Bulgaria will have at its disposal a very modest amount verging on zero," added he.

Oresharski likened the situation that he argues is going to occur with the financial crisis that gripped Bulgaria in 1996-7.

Thursday the Bulgarian Ministry of Finance released data, according to which in January the reserve has shrunken to BGN 4 B from BGN 5 B during the same month in 2011.

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