Bulgaria 'Should Demand' IMF Loan - Opposition Leader

Domestic | June 28, 2014, Saturday // 11:16|  views

GERB leader Boyko Borisov has explained his unexpected calls for an IMF loan with the changing situation in Bulgaria which requires urgent measures. Photo by BGNES

Center-right GERB party's leader Boyko Borisov has said Bulgaria should receive a billions-worth loan by the International Monetary Fund (IMF) to boost the banking system.

The question is not if, but "when and how the IMF is to be called," Borisov was quoted by the Bulgarian National Radio as saying.

In his words, the new debt he proposed is to provide "cash for the state to make payments".

"In order to support both the [currency] board and the banks money must be withdrawn (sic!), otherwise [those in government] will use the fiscal reserve and the state will have no fuses," he elaborated.

GERB, which was Bulgaria's ruling party between 2009 and 2013, was previously a vehement supporter of not taking loans and accumulating debts to keep key macro-economic indicators at a good level and promote fiscal stability.

Borisov now believes Sofia should be granted BGN 5 to 6 B, or EUR 2.5 to 3 B, to tackle its alleged problems.

Bulgaria is under a currency board after a severe crisis shook the financial system in 1996.

Since then, it has boasted about stable finance and banking, despite rumors that forced people to withdraw savings over the past hours.

At Friday's political consultations, when October 5 was picked as the most likely date for early elections, Borisov also said he was ready to head both an caretaker government (if the currently ruling one steps down) and a regular one after the vote.

Bulgaria is heading for early elections after the main ruling socialist party (BSP) was shaken by poor results at the European Parliament elections and its partners from liberal DPS withdrew support they had repeatedly given to the government.

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Tags: Boyko Borisov, GERB, BSP, DPS, currency board, Bulgaria, IMF, rumors, early elections, European Parliament elections


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