Konstantin Prodanov, chair of the Temporary Committee on Budget and Finance from “Progressive Bulgaria,” said the country should not delay issuing new state debt, pointing to a tight fiscal environment and growing financing needs in the coming months. Speaking on bTV, he described Bulgaria’s public finances as being under significant strain, while still expressing confidence that macroeconomic stability would be maintained despite slower growth forecasts from the European Commission.
He noted that Bulgaria is currently facing a combination of pressures, including around 2.5 billion euros in unpaid obligations, more than 1 billion euros owed to municipalities, and an additional 3 to 3.5 billion euros linked to commitments under the Recovery and Sustainability Plan. In his view, these factors make disciplined fiscal management and adherence to the 3 percent deficit limit a central government priority.
“We should not postpone the issuance of new debt,” Prodanov said, arguing that financing decisions should be taken without delay, particularly given shifting financial conditions in Europe. He warned that changes in European Central Bank interest rate policy could further tighten borrowing conditions, making late action more costly for the state.
