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Fiscal Discipline Wins Bulgaria Praise by World Bank President

Thursday, Jun 24, 2010

The World Bank is impressed with the fiscal discipline of the Bulgarian government, writes World Bank President Robert Zoellick in a letter to Prime Minister Boyko Borisov.

“We have been impressed with Bulgaria’s commitment to fiscal discipline and prudent management of external debt. While we recognize these steps have been difficult, we hope they will position Bulgaria to make the best possible gain from the recovery,” states Zoellick in his letter as cited by the press office of the Bulgarian Council of Ministers.

The World Bank President points out that his institution offers to support Bulgaria with its capacity and expertise in project management and execution, especially with respect to the reconstruction and rehabilitation of Bulgarian roads and railways.

“The World Bank fully supports your aim to maximize use of EU funds. This is a unique opportunity for Bulgaria particularly given that these funds are available on a grant basis. We are pleased to see your government’s support for reforms, especially in key areas such as pensions, health care, education, and public administration. We will also continue to work with your government to find the best modalities to support your reform efforts in other areas,” Zoellick writes to Borisov.

Bulgaria’s Finance Minister, Simeon Djankov, is a former senior World Bank economist. An even more top-ranking Bulgarian, current EU Commissioner for Humanitarian Aid Kristalina Georgieva, was a Vice-President of the WB, and specially received Zoellick’s permission to terminate early its contract, which was good till 2017, in order to assume the post of Bulgarian member of the European Commission.

Zoellick's praise comes at a time when Bulgaria is struggling to keep its budget deficit as low as possible. Bulgaria's recently adopted 2010 Budget Revision Act provides for a deficit of 4.8% of the GDP on cash basis, and 3.8% under EU accounting rules.

Source: novinite.com