Roundtable said the currency board: We will need billions

The currency board is the mechanism that has the greatest influence on political power in our country. Around this opinion united independent economists before the age of 12 years since the introduction of the currency board in Bulgaria, BNR forward.

Prior to the fixing of the euro mark, the Bulgarian politicians could not learn his uncontrollable desire for spending and printing money, economists commented. According to Georgi Angelov, senior economist at the Institute, Open Society, even rough comparison of the figures demonstrates the benefits of introducing a currency board. In 1997 inflation was 230 percent, then it is on average about 6 percent annually.
Georgy Ganev, program director of the Center for Liberal Strategies, reports that the board because people believe in the euro. Before 12 years only 15 percent of Bulgarians have had the confidence of the local currency. They are now 93 percent. He pointed out that the likelihood of a board to collapse in the economy is zero, which means that if the Board be abolished, this would be a political decision. I trust you will need to build a new, lower levels he said.
Danger to the currency board policy, says Lachezar Bogdanov from „Industry Watch“. Is fundamentally wrong to behave like the currency board is a necessary evil which must be run, he was categorical.
Measures to curb government spending to avoid budget deficits. Tax revenue for this year have made only a rise in January compared with January last year, while in February, March and April is a decrease that is increasingly increases, said Georgi Angelov, cited by BTA.
Tax revenue in April decreased by only if they are VAT least 38% than last April he said. At the same time increasing budgetary costs are increasing, it makes scissors to eat budget surplus he said. According to him, if the trend continues, the country will come out of the deficit after a two months.
Angelov said that there are several options for economic development and at present Bulgaria is moving in the version in which there is a decline in tax revenue within 15-20 percent. This means that will be needed between 1.1 – 2.2 billion euro to cover the budget deficit by the end of the year. Decline in tax revenues by 25 percent, will require almost 3 billion euro to cover government spending, said economist.
Angelov said that it is better to balance the budget now rather than awaiting.
According to Georgi Ganev now trust in the Bulgarian lev has the highest level, compared with previous years and this is convincing support for the currency board.

––––––––––––––––– ––––––––––

Finance