Ministry of Finance of the Republic of Bulgaria : PETAR CHOBANOV: THE STATE IS AN UPRIGHT PARTNER

22.01.2014

"The 2014 forecast for economic growth is not overestimated. I am less concerned now than 6 months before due to the measures taken by us to revive the economy", Minister of Finance Petar Chobanov stated in an interview for bTV. One of the reasons therefor is the changed attitude of the state to the businesses. "The state is an upright partner and one of the measures proving this is that we have started to refund VAT by order of receipt of the requests. This is the measure that refunds to the businesses 20%, the amount of the tax paid, and then they can use the funds to pay their suppliers, to pay salaries and even bonuses", Minister Chobanov said. He added that the VAT refunded in December 2013 amounted to BGN 540 million or by BGN 300 million more compared to December 2012. He further said that the recovery of the confidence in the state included also the timely payment under procurement contracts and the payment of old liabilities done at the moment. Minister Chobanov added that payments under EU Funds had been accelerated and in the second half of 2013 BGN 2.2 billion were paid to the businesses. "Part of the money is from the state budget and we expect the European Commission to reimburse it in March", he further said.

 Minister Chobanov added that the Bulgaria's government debt was not increased in 2013, but on the contrary. The loan of BGN 1 billion was to cover previous loans. At the end of March 2013 the debt amounted to BGN 14.4 billion, while at the end of the year - BGN 14.1 billion. Thus at the end of the year it turned out that the debt was by BGN 300 million less and the debt position of the country improved. As to the debt policy in 2014 the Minister stated that the limit provided for in the State Budget Law would be used appropriately and specified that "around BGN 1.3 billion are for payment of a maturing debt, BGN 1.7 billion we need to again repay an old debt and the remaining BGN 1.4 billion are to finance the budget deficit".

 In regard of the Public Investment Programme Minister Chobanov stated that project proposals were being received and the procedure was in the pipeline. "The Ministry of Finance is providing methodological information regarding the application form, where necessary", the Minister specified. According to Chobanov the cooperation between the Customs Agency and the Ministry of Interior is improving and this is reflected in the results of the fight against the contraband.