Bulgaria Tightens Control over Bank Loans

[Suzanne]

Bankers rise against IMF restrictions

Banks in Bulgaria will cut down loans. In 2006, the National Bank of Bulgaria (BNB) plans to limit the growth of loans provision to 20 percent. Last year the growth rate stood at 32.7 percent, said BNB vice-governor Dimiter Kostov. The restrictions were demanded by the IMF. Banks should give less money because people mainly spend it on imported consumer goods. At the same time production and export rates in Bulgaria are low, resulting in a record high foreign trade deficit - five billion US dollars, financiers explain.
However, most of the bankers don't approve of the restrictions.
"Leave us alone and let us do our job," said Anthony Hasiotis, Chief Executive Director of the Post Bank. He was indignant because the BNB changes regulations every three months under the pressure of the IMF.

http://www.standartnews.com/archive/2006/02/16/english/

[Suzanne]

Bulgaria's Foreign Trade Deficit Tops $5 Billion
Bulgaria's foreign trade deficit last year reached more than $5 billion, reported the Bulgarian National Statistical Institute (NSI).
In 2005, Bulgarian exports stood at 18.5 billion levs (1 euro = 1.95 levs), up 18.5% compared with 2004. Imports are with 55% larger than exports. Together with transportation and insurance costs the imports reached 28.7 billion levs, up 26.4%. The enormous current account deficit is the main issue in the negotiations with the International Monetary Fund (IMF). Because of it the IMF insists on restricting the credit expansion and on a huge budget surplus. According to the NSI fuels have the biggest share in exports. Their import grew by 52.1% and they hold a 20% share of the total import of commodities.

http://www.standartnews.com/archive/2006/02/16/english/business/index.htm