site.btaWB to Advise Bulgaria on Key Reforms and Projects in National Recovery Plan

The World Bank (WB) will advise Bulgaria on the implementation of some of the key reforms and projects included in its National Recovery and Resilience Plan (NRRP), such as the energy poverty reform and including reforms and investments projects delayed for years now, caretaker Deputy Prime Minister for EU Funds Management Atanas Pekanov told the Bulgarian National Radio on Monday. 

Last week he headed a Bulgarian delegation to the WB Group/International Monetary Fund Annual Meetings in Washington DC, including also Finance Minister Rositza Velkova, National Bank Governor Dimitar Radev and two central bank vice governors.

The WB will also cooperate with Bulgaria on a geothermal energy project, in which the country will explore its resources and make the best use of them, Pekanov added.

He noted that the direct message from the institutions is that there is a need for more conservative budgets in response to inflation. The crisis is different from 10 years ago when there was a severe recession and high unemployment, which is not the case now, and therefore a tightening of fiscal policy is more justified, Pekanov said. According to him, institutions have changed their view - 10 years ago they thought that there was no problem in tightening fiscal policy during a period of easier expansionary monetary policy, however, now the common message is that the two instruments of macroeconomic policy - monetary through interest rates and fiscal through the budget - should aim in one direction - inflation moderation.

Pekanov stressed that state support should continue, but it should be well targeted, so that it is not wasteful. As examples he mentioned households suffering from the rising cost of living and parts of the business sector. 

According to him, joining the eurozone is an additional symbol of stability for Bulgaria and can bring more confidence in the country from global markets. 

He added that political instability creates obstacles and delays and that is why there must be a regular cabinet.