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After a few months, Bulgaria will talk about a crisis of public finances

Submitted on Saturday, 31 January 2009No Comment

Due to it’s global nature, the crisis has already damaged the real sector, and after several months Bulgaria and the countries of the European union will talk about a crisis of the public finances. One of the reasons for that are the large sums that certain governments gave to aid the situation, which now burden the public finances.

This was announced by the minister of finance Plamen Oresharski today in Gabrovo. To answer the question of the supposed length of the crisis, the minister pointed out that there are no reliable indicators that can define the longevity of the situation, due to it’s global nature.

According to him, the crisis will last shorter if we manage ro restore the trust between banks quickly, between the banks and the business second, and between everyone else third, including households.

“In the banking system of Bulgaria in the last few years circulate a little over 10 billion euro, which are foreign money, not our deposits”, says Oresharski. He explained that due to that the total amount of given credits exceeds the savings of Bulgarian citizens with over 10 billion euro.

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