site.btaEC: Bulgaria Complies with Deficit Criterion

EC: Bulgaria Complies with Deficit  Criterion

Brussels/Sofia, November 17 (BTA) - The European Commission said Tuesday it has adopted a report concluding that Bulgaria complies with the EU deficit target of 3 per cent or lower. "The general government deficit in Bulgaria reached 5.8 per cent of GDP in 2014, above and not close to the 3 per cent of GDP target. However, the excess over the target can be qualified as exceptional and temporary within the meaning of the Stability and Growth Pact,as the general government deficit is projected to decline to 2.8 per cent of GDP in 2015 and as it results from an unusual event outside the control of the government, linked to the statistical reclassification of the Deposit Insurance Fund."

Bulgaria resorted to the Deposit Insurance Fund in the wake of the crash of the Corpbank when billions of leva had to be paid out to the owners of guaranteed deposits in this bank.

"After considering relevant factors such as the cyclical conditions and the development of public investment, as well as broad compliance with the requirements of the preventive arm of the Pact, the report concludes that the deficit criterion is considered as currently complied with," the EC said.