Thursday 28th of March 2024, 22:33 CET
Bulgaria passes IMF loan review and gets $37 mln
July 8, 2003
Reuters

Posted by HW on March 28, 2024

Approved
The International Monetary Fund praised Bulgaria's "strong" macroeconomic policies on Tuesday as it approved the country's latest loan review and released a $37 million tranche.

Climate
But the IMF urged Bulgaria to take steps to improve the climate for business and investment.

"Macroeconomic performance continues to be strong in Bulgaria, despite a weak external environment," IMF First Deputy Managing Director Anne Krueger said in a statement.

Good performance
She said strong policies have led to robust growth, low inflation, a strong external position and declines in unemployment.

The IMF official also welcomed the government's "commitment to a prudent fiscal policy" and said fiscal flexibility will help ensure that the 2003 budget deficit ceiling of 0.8 percent of gross domestic product is met.

Third loan so far
The review of Bulgaria's economic performance was the country's third under its $337 million IMF loan. Bulgaria has so far drawn about $191 million from the credit.

In order to balance the budget by 2005, Krueger said the government will have to strengthen the tax administration, rationalize subsidies and cut unproductive spending.

More reform needed
While some progress has been made in structural reform, the IMF said more is needed to encourage investors.

Strengthening the legal system, streamlining business regulations, improving corporate governance and increasing flexibility in the labor market would help draw investors to Bulgaria, the IMF said.

Privatization
"Completion of the privatization program, including the privatization of the tobacco holding and telecommunications company, in an expeditious and transparent manner will also be important to strengthen investor confidence," Krueger added.
 
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