18.01.2012

Bulgaria supports any ideas for fiscal stabilization in Europe and is the first country to introduce into its national legislation what is considered as the predecessor of the rules for strengthening the budget austerity of EU member states that are being currently discussed. Deputy Minister of Finance Boryana Pencheva said this while taking part in a round table in Vienna devoted to Bulgaria. The discussion is part of the Euromoney Forum for Central and Eastern Europe held in the capital of Austria. According to Mrs. Pencheva, introducing the national Financial Stability Pact is a strong argument for our country which takes active part in the dialogue had at all levels with regard to the package of austerity rules.

Deputy Minister of Finance Boryana Pencheva highlighted that the Government was creating the proper environment for encouraging investment and development of SMEs by maintaining financial stability and creating a predictable tax environment. Enhancing public administration services to the citizens and businesses through accelerated introduction of the e-government is on the agenda. The new Law on Public-Private Partnership to be heard in Parliament will also improve the investment climate in the country, she added.

Mrs. Pencheva recalled that Bulgaria had one of the lowest levels of government debt-to-GDP ratio and was the EU member state with the third lowest budget deficit. She also emphasized the high capital adequacy and liquidity of Bulgarian banking system and mentioned the outcome of the first GS auctions held this year by the Ministry of Finance with huge interest from financial investors. Bulgaria's long-term interest rate, which is a Maastricht criterion, continued falling in December 2011, reaching its lowest level since November 2008, Mrs. Pencheva further recalled. According to her, the positive trend of a decline in the long-term yield showed that investors esteemed highly the policy of rigid fiscal and budgetary discipline pursued by Bulgaria.

Every year the Euromoney Forum gathers Europe's political and economic elite for a discussion and analysis of the opportunities and future challenges for the European economy. The Forum continues today.