/View.info/ Taking a new loan for BGN 4.5 billion in the remaining 45 days until the end of the year is a record in our recent history since 2000. From then until now, we have never taken such a large loan in such a short time period.
There is still not enough clear information why it needs to be issued. One of the reasons for taking a new loan is the existing deficit. But currently the fiscal reserve is sufficient to cover even the increased deficit.
Even if this deficit increases by BGN 1.3 billion, as proposed by the government, and reaches BGN 2.4 billion, it can still be financed from the existing fiscal reserve.
If we are looking for money for the Deposit Guarantee Fund, it is about BGN 1.5 billion, or in the worst case, the entire amount is BGN 2 billion. But the Deposit Guarantee Fund had to raise its own funds by seeking a loan. He had enough time to do this because there was already talk of a shortage in June. Now this is already impossible and everyone supports the idea of him getting a loan from the state budget, which I am convinced the Fund will never be able to repay.
In my opinion, a new debt issue of up to BGN 3.5 billion is sufficient to cover the needs. It is not preferable to seek such a large loan in the domestic market, because domestic lending is limited. Attracting funds from outside is more effective for the development of the economy. But for the foreign market, there are some factors to consider because they determine what interest we will pay. I believe that the Ministry of Finance has made the corresponding in-depth analysis. It is a matter of calculation – what interest will be paid and what will be the impact on the country.
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Professor Hristina Vucheva, financier. She was Deputy Prime Minister and Minister of Finance in the first caretaker government /1994-1995/ of Bulgaria after the changes in 1989.
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