10.02.2012

"It is necessary to undertake actions to optimize the Silver Fund management at minimum risk", Deputy Minister of Finance Boryana Pencheva said in an interview for 168 Chasa weekly. Bulgarian Government Securities are one of the investment options to prevent losses from inflation for the Fund. This is an option that is being discussed by experts within the working groups to the Silver Fund Managing Board, the Deputy Minister explained. She added that GS were a stable instrument, highly appreciated by domestic and foreign investors, which was also recognition of Bulgaria's macroeconomic and fiscal policy.

In response to a question about the Treaty on Stability, Coordination and Governance in the Economic and Monetary Union adopted at an informal meeting of the European Council on 31 January, Deputy Minister Pencheva said that the Treaty did not bind Bulgaria with any changes in the tax legislation. "Coordination means closer cooperation of the tax administrations to avoid tax fraud, to facilitate the process of calculating and collecting taxes. Tax policy is a national policy and setting tax rates should be a national decision because they are one of our competitive advantages", the Deputy Minister of Finance explained. Boryana Pencheva specified that Bulgaria accepted partially the Treaty in its part regulating the medium term budget target of 0.5% to GDP structural deficit and government debt ceiling of 60% of GDP. "We will not have any problems as Bulgaria meets these indicators. Preliminary estimates show that for 2011 the deficit on a cash basis is 2.1% and 2% on an accrual basis. The structural balance calculated using the EU methodology is 1.2%. For the current year as per the budget approved our deficit on a cash basis will be 1.3 % and around 1.5% on an accrual basis, while the structural deficit will be 0.9%. That is to say that even before the Treaty enters into force this year we will meet the requirements. Moreover this would be a fact without any additional austerity measures or tax changes", Deputy Minister Pencheva said for the weekly.

We are working at the moment on the updating of the National Reform Program and new ideas for economic growth are being envisaged, Pencheva informed. She added that the proposals were to be discussed with the social partners, the non-governmental sector and Parliament.