site.btaKristalina Georgieva: 2025 Eurozone Entry Realistic for Bulgaria

Entry in the eurozone in 2025 is a realistic target for Bulgaria, IMF Managing Director Kristalina Georgieva said in a BTA interview in Marrakech where the World Bank Group - IMF are holding their annual meeting. 

“It is a realistic goal because in our forecasts inflation is headed down, from 13% last year and 8.7% this year to 3% next year. It is of key importance for Bulgaria to cover all criteria. What is very good for the country is that the deficit is low and the debt is very low. It remains to cover the inflation standard and the legislation requirements, and it will open up the door to the eurozone for Bulgaria,” she said. 

She went on to reiterate why it is important for Bulgaria to be in the eurozone. “First, because Bulgaria is in a currency board anyway, which means that the policy of the European Central Bank is applicable to our country by pegging the Bulgarian lev to the euro. We, however, cannot influence this policy. Secondly, because our country will be better protected with the full coverage that comes from membership of the euro area. Lastly, because we accepted this obligation when we joined the European Union.

 Asked about the ongoing talks on the increase of the IMF capital, Georgieva said that she is encouraged by these talks. “They are headed to rallying the IMF members around increasing the quotas between 35% and 50%,” she said adding that the next step is to agree on the formula for redistribution.

Georgieva also said: “We have strong support to increase our capacity to lend to the poorest countries, for which we need subsidies. Here in Marrakech, we will achieve the objective of filling the reserve of these subsidies. What is very interesting is that a third of the donors are countries with dynamic economies, while richer economies provide the rest. But the fact that we have countries like Trinidad and Tobago, which are donors, shows that we all realize that we live in a world with more frequent shocks and that solidarity is very important.”