04.02.2012

\"We need to diversify the instruments for investment in the Silver Fund\", said Deputy Minister of Finance Boryana Pencheva on Darik Radio. The resources in the Fund were BGN 1.8 billion at the end of last year and they are depreciated by inflation, so losses of BGN 25-50 million are generated every year, she explained. The Deputy Minister added that currently Silver Fund resources were kept with the BNB at a zero interest rate and that is why amendments to the Law were considered so as to allow the investment of these funds in EU countries, which had not been done thus far due to the high risk. Pencheva was certain that there was no loss of capital and money was depreciated by the inflation only and not by inadequate investment.

We have made payments, not from the Silver Fund, though, Deputy Minister Pencheva further explained. According to her, Bulgaria currently manages to cover all of its commitments, with debts amounting to more than BGN 500 million being repaid in January. She also said that Bulgaria was one of the few countries with unrevised or even upgraded credit rating and if it offers a debt issue on international markets, there would be a serious investor interest. Boryana Pencheva also noted that the Bulgarian banking system was stable, highly liquid and with very good capital adequacy.

According to her, Bulgaria would not be committed to pay any money whatsoever under the Euro Pact to be signed in March. She explained that the country\'s structural deficit was 1.2 % of GDP in 2011 while after the Euro Pact becomes effective, in 2013 at the earliest, it would set that members should have a structural deficit of up to 0.5 per cent of GDP. With the Pact it would be possible however for countries with government debt below 60% to have a structural deficit of 1%. According to the estimates of the Ministry of Finance, we would meet this criterion as early as this year. Boryana Pencheva added that this Pact provides for pursing rigid and stable financial policies. She said that Bulgaria would have financial commitments only after joining the euro area by virtue of other agreements. Then our country, as well as the other new members joining the euro area would be paying a more favourable contribution than the old members. Bulgaria\'s contribution would be between EUR 50 and 70 million per annum. The euro area needs Bulgaria as a stable financial state, added the Deputy Minister of Finance.