Bulgaria's Finance Minister Declares Pension Raise ahead of Elections

Bulgaria's FinMin and vice-PM Simeon Djankov issuing from a sitting of cabinet Wednesday. Photo by BGNES

Retirement pensions in Bulgaria will be raised starting 2013 announced Bulgarian Finance Minister Simeon Djankov following a cabinet sitting Wednesday.

"Cabinet approved the state budget outlook for the following 3 years. The outlook includes pension raises," said Djankov.

He explained that with the state budget of 2013, the center-right GERB government headed by PM Boyko Borisov will resume indexing pensions relative to inflation and productivity of labor in Bulgaria.

The GERB cabinet suspended indexing and effectively froze pensions in the first state budget it drafted, the one for 2010, in order to battle the looming financial crisis.

GERB swept to power during general elections in July 2009 and faces fresh elections in the summer of 2013, its popularity continuing to soar to some 30-40%, according to polls.

"Even above the old indexing method, I hope that an additional retirement pensions raise will be possible with the budget for 2013," revealed and optimistic Djankov Wednesday.

Bulgaria's vice-PM also revealed that cabinet also formally approved a proposal to spend up to 30% of Bulgaria's so-called Silver Fund for retirement pensions to issue bonds that cover sovereign debt.

He further explained that future measures might include raising that ceiling to 40% or more of the Silver Fund.

Critics have warned that this could mean a severe depletion of Bulgaria's fiscal reserve and a corresponding disbalancing of the country's financial stability.

We need your support so Novinite.com can keep delivering news and information about Bulgaria! Thank you!