site.btaPlans for New BGN 16,000 Mln Loan Presented in Catastrophic Way before the Public

Plans for New BGN 16,000 Mln Loan Presented in Catastrophic Way before the Public


Plovdiv, February 20 (BTA) - The plans for a new loan of 16,000
million leva was presented in a catastrophic way before the
public. They were unveiled, to put it mildly, awkwardly by
Finance Minister Vladislav Goranov, Reformist Bloc Co-Chair
Radan Kanev said here on Friday. "We all bear political
responsibility for his mistake. The consequences are a heavy
blow for the Right and may affect the election results," he
added.

Kanev said, however, that the proposed model of public debt
management is used by many countries and the option offered is
very good: to reduce debt payments and interests on the overall
public debt, to consolidate existing obligations and cover the
budget deficit for a three-year period by 4,000 million leva. In
this way the interests may be reduced three-fold.

"We will demand from Finance Minister Goranov a clear account of
what public reforms will be financed by the 4,000 million leva,
designed for the deficit coverage," Kanev said further. Yet, it
is clear that the lack of adequate revenues cannot be
compensated through the deficit.

Kanev gave a positive assessment of the Government's performance
during its first 100 days in office. The trend is correct but
the pace in most of the ministries is inadequate, he observed.