site.btaParliament Endorses EUR 200 Mln Loan from Council of Europe Development Bank

Parliament Endorses EUR 200 Mln Loan from Council of Europe Development Bank

Sofia, June 29 (BTA) - Parliament on Thursday endorsed a 200 million euro loan from the Council of Europe Development Bank. MPs ratified a framework agreement for the loan which will provide national co-financing under EU-backed operational programmes.

There is a five-year grace period and money will be absorbed in instalments. The funds will be budgeted for 2018.

They will go towards national co-financing in investment projects under the Operational Programmes Regions in Growth 2014-2020, Human Resources Development 2014-2020 and Science and Education for Smart Growth 2014-2020.

The Bulgarian Socialist Party (BSP) categorically opposed the new loan. MP Roumen Gechev said that from one of the addenda it emerged that part of the loan will go towards migrants. Gechev asked what has called for a new loan after Deputy Finance Minister Kiril Ananiev reported 12,700 million leva in the fiscal reserve at the end of the month to the parliamentary budget committee. He recalled that the National Assembly has already approved 16 billion leva in new debt. "You are saddling the next generations with new loans," warned Gechev.

Also BSP voted against the loan because there were no clear estimates.

Gechev said: "Either it is true that Bulgaria is in good financial shape which makes this loan pointless or as the BSP claims the financial shape is far from good, there are no free reserves and the government is forced to raise a 200 million euro loan.

"The loan will go towards programmes, where projects have compulsory national co-financing, recalled MP Peter Petrov of United Patriots.

GERB said that the fiscal reserve is meant to ensure the fiscal stability of the banking system, cover the deficit and repay external debt obligations.