Former PM Oresharski Warns of Possible Greek-style Debt Crisis in Bulgaria

Finance | June 11, 2016, Saturday // 13:59|  views

Former Bulgarian Prime Minister Plamen Oresharski. Photo by BGNES

Former Bulgarian Prime Minister Plamen Oresharski warned that Bulgaria is facing a possible Greek-style debt crisis.

In an interview for private NOVA TV on Saturday, Oresharski said that Bulgarian debt is increasing much faster that the rate of economic growth and in this respect Bulgaria is following in the footsteps of Greece.

If the trend is sustained, this threatens the financial sovereignty of Bulgaria and the country risks becoming dependent on creditors.

The former prime minister added that such developments had already been witnessed in the southern periphery, pointing to Greece and Bulgaria at the end of the 1980s and 1990s.

In order to avoid the occurrence of a debt crisis, Oresharski proposed two measures – stop taking new loans and accelerating economic growth.

As regards the insolvency of Corporate Commercial Bank (KTB) which bankrupted during his term as prime minister, he said that he was not aware if there had been plot for the deliberate collapse of the bank.

Oresharski said that he was examining the report of the external auditors on the state of the bank before its collapse.

Turning to the Bulgarian Deposit Insurance Fund (BDIF), he noted that the fund has remained decapitalised after it repaid insured deposits at KTB.

He advised collecting installments from banks in order to refill the fund, which will provide stability in the event of new fiscal crises.

Oresharski also commented the appointment of controversial media mogul Delyan Peevski as head of the State Agency for National Security (DANS) in 2013, which led to large-scale protests and ultimately to the resignation of his government a year later.

Oresharski said that he was an expert prime minister while the decision on Peevski’s appointment had been a political one.

He expressed disappointment that the term of his government had been so short to carry out all of the reforms it had initially planned.

Oresharski reminded that the construction of the fence along the border with Turkey had began during his term as prime minister.

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Tags: Bulgaria, greece, debt crisis, loan, Plamen Oresharski, KTB, insolvency, Delyan Peevski, DANS, border, fence, turkey


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