13.01.2016

"The government has long shown its willingness to think in one direction with businesses. The absence of reforms in the tax system is surely a good news", Minister of Finance Vladislav Goranov said in an interview for the "Economy" magazine. The Finance Minister again expressed the opinion that the planned budget deficit of 2 percent was absolutely feasible. "Apart from the geopolitical risks which are beyond our control, I am optimistic about the economic growth, too, and for this reason I believe that these 2% are absolutely feasible. And why not having it at even lower level, if we work well. Conceptually, I think that we should strive for a neutral budget balance, i.e. a zero deficit", Minister Goranov said. In his opinion the budget risks are again related to some reforms which were not performed last year, in particular in the areas of defence and security, and for which there was a shortage of time mainly in legislative terms. He expressed the hope that measures in that direction would be taken as early as at the beginning of 2016.

The stress tests of the financial system and the challenges to the security worldwide - these are the major challenges for 2016 according to Minister of Finance Vladislav Goranov. "An asset quality review for the whole financial system has not been made in Europe; I don't know whether such a review has been made in the world, too. In some places a review was made of the banking system, in other places - of insurance companies, but at one time - of the pension system, the insurance sector and the banking sector - never, and in the course of one year, in one country at that", Minister Goranov commented and added that the current performance of the financial system provided a basis for optimism that we would go smoothly through that trial. Asked whether there will be any processes of consolidation in the banking system because of the stress tests and whether there are any threats to the financial system, Minister Goranov expressed the opinion that: "There are a lot of banks in Bulgaria and the processes of consolidation are natural and are not provoked by the stress tests. They are happening throughout Europe. As regards the financial system, with the exception of the case of CCB which is a matter of crime, I don't see any threats or risks", he is positive. "We have to go through this test to restore confidence and not to prove evident facts, i.e. that the financial system is robust. It is very well capitalized and liquid", pointed out Goranov and emphasized that the state had shown that it had sufficient tools to cope with such crises.