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Credit stood unchanged in May, despite increase in monetary base.
Credit to private sector remains at BGN 16,421 by end May, revealing stabilization of banking lending.The M3 aggregate grew by 2.1% to BGN 22,490 million; most of the expansion was due to increase in monetary base. The latter grew by BGN 238 m in May, or 3.5% up from April. The fiscal policy continued to be restrictive, by pilin...
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In the election campaign, all major right-wing parties suggested a decrease of the total fiscal burden.
All major right-wing parties suggested a decrease of the total fiscal burden (measured thought the total public spending) from nearly 42% of GDP in 2004 down to 35% in the next mandate. The socialist party, leading in the election polls so far, has suggested to keep the fiscal affairs status quo. Thus a significant difference of...
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A monetary contraction in April followed the credit hike in March.
After the deliberate expansion of credit portfolios in March, commercial banks drove back their balances by end-April.The M3 aggregate shrank by 0.8% down to BGN 22,023 million. At the same time, total credit to private sector went down to BGN 16,420 million by the first week of May, or down by 3.4%. Such development revealed th...
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Housing Market in Bulgaria/April 2005 is available to subscribers.
The April update of our regular report was released today. For more information and subscription, please click the product button on the right....
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The ruling party NDSV promises tax cuts if it wins a second mandate.
The economic policy guidelines, presented by the ruling party NDSV focused the debate on the tax burden in the country. The changed offered is mild rather than radical, however we may now distinguish an alternative to the socialists’ program.First, the tax cuts would start from the heaviest taxes, namely the tax-insurance burden...
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The government decided to grant the Varna & Bourgas airport concession to Copenhagen Airports.
The decision is expected to have impact on Bulgarian Black Sea tourism development.The changes will affect both the physical infrastructure and the business operations model of the two airports. Up to now, we know of the following plans of the selected concessionaire:1. Construction of a new terminal in Varna and reconstruction ...
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Foreign financing increased, BoP statistics suggests.
On an 12-month basis to January 2005, foreign direct investment to Bulgaria reached EUR 2018 million (EUR 30.5 for January 2005). In Q4 of 2004 they skyrocketed to EUR 1032 m, or double the volume of Q4 of 2003. However, most of this volume came as a payment on the privatization of regional power distribution companies sold earl...
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Economic growth accelerates for a fifth quarter in row.
Economic growth accelerated in the last quarter of 2004. The real GDP growth reached 5.6% having been no more than 3.9% a year and a half before. In nominal terms, the economy now produces ?19.4 billion per year, which is exceeds the 1998 level by about 2/3. The last two quarters of 2004 registered record high levels of GDP grow...
