site.btaBulgaria Won't Be Obstacle to Greek Bridging Loan

Bulgaria Won't Be Obstacle to Greek Bridging Loan

Sofia, July 17 (BTA) - Bulgaria won't be an obstacle to the extension of 7 billion euro in emergency financing to Greece provided there are legal guarantees that Bulgaria and the other non-euro area countries won't be affected directly if developments in Greece deteriorate and additional contributions to the EU budget are paid by eurozone countries. This emerged from a statement by Finance Minister Vladislav Goranov during Friday's Question Time in Parliament.

Provided there are unequivocal legal safeguards the Bulgarian government believes there is no risk in tapping this mechanism and Bulgaria will join the rest of the non-euro countries in providing bridge financing to Greece ahead of the third bailout programme, Goranov added.

The Finance Minister said regulations that underlie the mechanism will be changed to prevent the eurozone countries from using it as a tool for assistance without agreement from non-euro area countries and without guarantees that they won't have to provide financial assistance to eurozone countries.

Prime Minister Boyko Borissov said it would be anti-European if Bulgaria was the only country in Europe to fail its neighbour. He urged the MPs to show understanding and Bulgaria's good neghbourly in view of the guarantees given to Bulgaria.

The Prime Minister read texts that protect non-eurozone members adopted on account of Bulgaria. He recalled the steps that preceded the decision for the bridge financing and Bulgaria's initial position, underscoring that Bulgaria's agreement stems from a desire for goodneighbourly relations, guarantees that Bulgaria won't be affected and fears that without this decision the situation in Greece will continue to deteriorate and this will be a direct threat to Bulgaria.