13.05.2011

Deputy Minister of Finance Boryana Pencheva met today with Peter Harrold, World Bank Country Director for Central Europe and the Baltic Countries, and experts from the Bank. The visit of the World Bank team is on the occasion of discussing the time schedule for the year in execution of the objectives laid down in the Bulgaria-World Bank Partnership Strategy in light of the upcoming vote on the document by the World Bank Board of Executive Directors.

The partnership between Bulgaria and the World Bank in the next three years will involve mainly expertise and consultative support by the Bank for implementation of the priorities laid down in the document. It covers three areas - policy support, support for the absorption of EU funds, and complementary financing in any area that needs it.

The Strategy for partnership with the World Bank is one more instrument that will help us to achieve the goals set in the medium-term strategic documents of Bulgaria - the National Reform Programme and the Convergence Programme, Boryana Pencheva said. During the meeting she presented the current stance of the country while pointing out that Bulgaria had stable public finance which would help us to meet the target of accelerated economic growth. The Deputy Minister of Finance forecasted sustainable and stable economic growth, its rate for the current year being planned at 3.6%, driven primarily by the exports. We have predictable fiscal policy and since 1 January Bulgaria has been the country with the lowest taxes in the EC. No increase of tax rates is envisaged which is a favourable factor to attract foreign investment. Bulgaria\'s budget deficit is one of the lowest in Europe - this year we expect it to be 2.5% of GDP and next year to fall to 1.5%, Deputy Minister Pencheva added. She acquainted the World Bank experts also with the basic parameters of the Financial Stability Pact. The Pact is an instrument to maintain sustainable fiscal policy and long term stability, preserve tax rates, limit the role of the state and ensure stable budget position - the deficit is to be limited to 2% of GDP.

Deputy Minister Pencheva further emphasized that of primary importance for the country was investing in infrastructure - road, transport, environment and innovation, and along those lines the absorption of EU funds should be stepped up. Peter Harrold indicated that the country\'s progress in EU funds absorption was visible, and the Partnership Strategy was an innovative instrument through which the World Bank would help for speeding up the process.