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IMF asks Bulgaria to maintain tight fiscal policy
Tirana, Dec. 15, 2008 (AENews) – An International Monetary Fund mission commented on Monday economic situation in Bulgaria, underlining the necessity to continue tight fiscal policy, and to slow wages increases in order to “deal with the challenges” created by Global Financial Crisis.
“In a difficult external environment, it will be essential that public policy is focused on maintaining public trust, and continue the strong policies of recent years. Fiscal surpluses remain an important support for the currency board, and also essential to preserve balances in the fiscal reserve account — a necessary shield if problems were to emerge”, – IMF said in a press release.
Bulgaria created a currency board back on 1997. The exchange rate of the Bulgarian lev was fixed by law to the deutschmark and later to the euro at the level of 1.95583. The currency board arrangement is expected to be maintained until the country joins the Eurozone in 2011-2012.
