No Worries on Bulgaria's New Debt - Socialist MP

Finance | August 17, 2013, Saturday // 13:44|  views

Bulgarian Socialist Party MP Rumen Gechev. File photo.

There should be no worries about a recently passed state budget revision involving taking a EUR 1 B loan, according to Bulgarian Socialist Party MP Rumen Gechev.

"Every budget needs a loan now and them, this is common practice for most countries in the world," said Gechev for Nova TV Saturday.

The socialist MP further said he is confident that Bulgaria will be able to repay the new loan.

He also said that even after it takes the credit, Bulgaria will remain the EU member state with the lowest debt-to-GDP ratio.

Gechev moreover added that the debt is taken in part to preserve fiscal stability by maintaining its fiscal reserve to levels around BGN 4 B.

"By the way, those are the levels of the fiscal reserve approved by Bulgaria's former government of our political rivals GERB," added Genchev.

The socialist MP also defended the degree of discretionary spending in the budget update.

"Nowhere in the world do you specify what every cent in the budget goes for. This budget is no different," said Gechev.

Bulgaria's President Rosen Plevneliev had vetoed the budget revision, foremost due to an alleged lack of transparency regarding the intended spending of the loan.

Friday the Bulgarian Parliament overthrew the President's veto, with the votes of all political groups except those of former rulers GERB.


Tags: fiscal reserve, Rumen Gechev, Rosen Plevneliev, loan, budget revision, veto, GERB, Bulgarian Socialist Party, debt

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