site.btaFinance Minister: LV 2 Bln Leva Is Significant Fiscal Effort for Bulgaria But It Can Afford It

105 POLITICS - FINANCE MINISTER - COMMENT - F-16 FIGHTER JETS

Finance Minister Goranov: LV 2 Bln
Is a Significant Fiscal Effort for Bulgaria
But It Can Afford It

July 19 (BTA) - Commenting the upcoming purchase of F-16 Block 70 fighter jets for the Bulgarian Air Force,  Finance Minister Vladislav Goranov told reporters Friday that the 2 billion leva which is to be paid for the deal is a significant fiscal effort but Bulgaria can afford it without breaking its own legislation or EU regulations.

Goranov explained that the aircraft's deferred delivery over time will convert the current cash expense into accrual basis over the years in which the machines are delivered. He pointed out that the deficit, which be will reported in April 2020 will not include this 2.1 billion leva.

Goranov was adamant that the payment has to be done in one installment and that there is no other option. "If a country does not have credit history for this type of deal with the US side, there is no other option, and I am convinced that after today's decision and after the final payment for this deal, any next large arms supplies done with the US government in the future will be done under much more favorable conditions," he said.

On Thursday, while speaking at the annual conference of Bulgaria's ambassadors and permanent representatives at Sofia's Central Military Club, Prime Minister Boyko Borissov insisted that Bulgaria should pay for the F-16 fighters up front "because I'm sick and tired of paying, on three occasions when we come to power, the debts incurred by previous governments for the aircraft they had contracted". Later, President Rumen Radev said that he continues to believe that the agreed upon price will increase significantly very soon. IG/DT