/ world today news/ The problems with KTB and state aid may lead to an excess deficit in the budget. This was said by the Minister of Finance Petar Chobanov at a hearing in the budget committee in the parliament today.
Chobanov explained that the aid to the bank would affect the debt, which would be increased.
Whether there will be an excess deficit is a topic of further discussion. Hypothetically, 1.5-2 billion BGN will be the state aid. The deficit is likely to cross 3%, the finance minister said.
Petar Chobanov added that the European Commission supports the measures against KTB.
Menda Stoyanova from GERB asked if the possible excess deficit would prevent us from entering ERM2.
According to Chobanov, the excess deficit can be avoided, but if there is one, it will be a one-off – only this year.
Next year, the excess deficit would fall automatically. Whether there will be one again depends on the next cabinet. Next year, the government would also be responsible for the progress of the ERM2 procedure.
Earlier today, the finance minister announced that the banking scandal is huge. He compared it to that of Bernard Madoff, the man accused of stealing $65 billion through the world’s largest financial pyramid scheme (see details in “More on the subject”).
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