Deputy Prime Minister and Finance Minister Galab Donev has said Bulgaria will have to take on new debt of up to €3.8 billion, describing the measure as unavoidable given current fiscal pressures and urgent state obligations.
Speaking at a Council of Ministers briefing, Donev warned that without the borrowing the government would struggle to cover key payments in the coming months, including pensions scheduled for July. He stressed that the ceiling must be approved by the National Assembly by June 20.
He accused the previous caretaker administration of effectively passing unresolved financial obligations to the current government, saying fiscal risks had been shifted forward instead of addressed.
According to the finance minister, the state deficit stands at 7.4% under unchanged policies, equivalent to more than €8.5 billion, alongside an additional €2.2 billion in unpaid or deferred expenses. He described these liabilities as “expenses hidden in drawers” that are now surfacing in official accounts.
Donev said these delayed obligations include already invoiced but unpaid infrastructure and municipal projects, particularly linked to the Road Infrastructure Agency and various budget annex commitments.
