Deputy PM Pekanov: Putting Off Eurozone Entry Entails Serious Losses to Bulgaria

Sofia, Feb 19 (BTA/GNA) – The postponement of Bulgaria’s euro changeover brings serious damage and economic losses to this country, said caretaker deputy prime minister for EU funds management Atanas Pekanov Sunday on bTV. According to him, Bulgaria loses BGN 300-400 million a year because of not being in the euro area.

“We refuse to have our credit rating raised, respectively to have the interest rate on the state debt dropped, which would save how much the budget pays for the state debt. When Croatia entered the eurozone in the summer, they raised its credit rating by one or two steps. This reduced interest rates on the public debt by 1% and led to savings. For Bulgaria, this would mean savings of around BGN 200-250 million leva per year,” Pekanov explained.

He pointed out that because of the postponement of the adoption of the euro, the interest rates for businesses also did not decrease, leading to losses of BGN 50-60 million.

“And one more very important thing to our fellow citizens abroad. Some of them are part of Vazrazhdane’s petition against the euro, but they must understand that they work, they toil, they receive income in euro; their shops, their businesses receive income in euro. They send some of it to Bulgaria, which is converted. Every time 1 euro is revalued, 1-2 cents are lost,” Pekanov added. In his words, these losses amount to BGN 50 million.

“These are losses that we are inflicting on ourselves with our reluctance and inaction to enter the eurozone faster,” Atanas Pekanov said. “The presumption that somehow we have not done enough, I would not accept it. I have put my name behind this cause and I support Bulgaria’s entry into the eurozone,” he said.

According to him, there are political formations that use false arguments against the euro as part of their election campaign.

BTA/GNA