22.03.2013

Inflation this year will be lower than expected, forecasted Minister of Finance Kalin Hristov in an interview for Reuters. He added that it would be 1.7%, instead of the expected 2%. According to Hristov the current account deficit would most probably be around 0% and not 2.8% of GDP as projected when drawing the 2013 budget. The Finance Minister stated that the Government would stick to the already adopted 2013 budget. However within its framework reserves could be found to focus on special programmes for job creation and support to the most needy.

"For the time being we expect to meet the deficit target", Hristov said. Our country will not hurry to join the euro area until there are clear signs that the debt crisis has ended, he added. The Finance Minister stated that in the past 17 years it had become clear that the Bulgarian banking system was very well regulated. "The capital adequacy of the system is 16% and the liquidity 26%". He added that "there are no reasons for concern about its stability".