Fiscal Watchdog Saved Bulgaria's Silver Fund from Djankov

The Governor of the Bulgarian Central Bank, BNB, Ivan Iskrov, photo by BGNES

Bulgaria's fiscal reserve amounts to BGN 5 B, the Governor of the Central Bank, BNB, Ivan Iskrov, has reported.

Iskrov spoke at an event marking the 10th anniversary of the establishment of the Financial Supervision Commission, FSC.

The Governor further revealed that former Finance Minister, Simeon Djankov, has eyed the BGN 2 B in the so-called Silver Fund (the public pension system), but its robbing has been prevented by BNB and FSC.

Iskrov said Djankov made serious attempts to influence the independent FSC by "subjugation, experiments, concocted probes, and taking over the Silver Fund." He praised the fiscal watchdog for being able to resist.

"The fiscal reserve would have been now BGN 2 B only if it wasn't for FSC," according to the Governor.

The Silver Fund, a state retirement fund, was set up in 2008 in order to cover future pension system deficits caused by Bulgaria's aging population.

About a year ago, Djankov wanted to allow its Silver Fund to also invest in bonds issued by national and local administrations. The proposal was criticized by the Bulgarian opposition and the European Central Bank, which said the fact that Bulgarian securities would not require a rating could place the Bulgarian government in "a privileged position compared to other issuers."

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