The IMF mission was a success

Finance Minister Milen Velchev and the IMF Chief for Bulgaria Gerald Schiff characterized as successful the present visit of the IMF experts to Bulgaria. At the closing press conference Minister Velchev indicated that the aim of the mission was discussion of the budget issues-budget 2003 implementation and the budget 2004 process.

Both countries marked the exceptionally good implementation of budget 2003 as well as the expectations for the revenues and expenditures until the end of this year. The differences which still remain are dedicated to the most appropriate level of the deficit  as according to the government it should remain 0.7% until the IMF recommends 0.5 %.

Gerald Schiff underlined that the IMF mission evaluates as positive the macro economic situation.  In his opinion a growth of 0.5 % of the GDP can be achieved this year. He noted the continuous unemployment decline with its lowest level since 1999 as well as the well-controlled inflation.

Mr. Schiff expressed his satisfaction from the increased financial intermediation.  We are aware that the rapid credit growth and the rapid import growth are leading to a large and growing current account deficit. So we urge the government to continue the cautious fiscal policy for the rest of this year, added Gerald Schiff.

With regard to the additional spending allocated in the budget it is fully acceptable that the municipalities receive the additional 155 million leva that were promised to them under condition in budget 2003, said Minister Velchev. There is the IMF agreement for additional spending of these means with regard to the Health Fund, which expects additional deficit and actualization of its budget.