Bulgaria expects hard negotiations with IMF

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Bulgaria expects hard negotiations with IMF

Fiscal targets set to pose biggest challenge

Finance minister Plamen Oresharski stated for the National Radio yesterday that he expects tough negotiations with ongoing IMF mission in Sofia . The talks with the Fund will be centred on the budget balance target for next year, according to Oresharski, as the government will continue to insist on a fully balanced budget while the IMF is advocating a considerable budget surplus. The finance minister is also concerned that excessive spending in the election period and extraordinary transfers for flood relief will endanger the full-year budget expenditure criteria agreed with IMF for this year. The mission of the IMF started official meetings with local authorities yesterday. The two-week visit under the second regular performance review of the 2-year precautionary agreement is the first tough test for the new centre-left government, which looks divided between generous social commitments and expert advices for tight fiscal expenditures necessitated by the rapidly deteriorating CA deficit.


 

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