Deputy PM: Difficult to Predict Impact of Greek Developments on Bulgarian Economy

Bulgarian Deputy Prime Minister Tomislav Donchev said that it was difficult to predict what impact the events in Greece would have on the Bulgarian economy as Athens was faced with several possible scenarios of development.

Donchev called on Bulgarians to be calm as there was no room for panic arising from the situation in Greece.

It was similarly difficult to forecast whether Greece will default on its IMF debt repayment, which falls due on Tuesday, the deputy prime minister said in an interview for the Bulgarian National Television (BNT) on Sunday.

As regards the bailout referendum proposed by Greek Prime Minister Alexis Tsipras, Donchev commented that this move might have been motivated entirely out of internal political issues.

One possible motive for the proposed referendum might have been to provide the government with an opportunity to come out of the difficult situation it has found itself in and deal with internal inconsistencies.

Donchev said that due to the mandate and its electoral promises, the government was not in the position to accept the decisions of the creditors.

The other possible motive for the proposed referendum might have been to buy the government some more time.

According to him, Bulgaria will experience a negative effect due to its proximity to Greece.

However there could also be a positive impact due to the intensive exchange of goods between the two countries and the migration of Greek businesses and companies to Bulgaria.

Donchev expressed hope that the positive and negative effects will even themselves out and the final effect will be close to zero.

He reminded that sometimes in economics the consequences of a crisis were not as strong and dangerous as the negative effects induced by panic.

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