Collecting Materials and Analysis on the Tendency of Opening and Liberalization in the Former Socialist Countries during Transformation

동유럽 전환; 불가리아를 중심으로; 불가리아는 결코 외채를 상환하지 못할 것이라는 중앙은행관의 예측

East European Transition: Focus on Bulgaria --- Bulgaria May Never Pay Off Foreign Debt In Full, Deputy Central Bank Governor Says

REGION/NATIONAL
CE_EuropeBulgaria
THEME
openness>economy>foreign_trade
Data Info
DATA INFO : media_rec
LOCATION OF ORIGINAL DATA : LOCATION
AUTHOR
By Ernest Beck
PUBLICATION
Wall Street Journal
DATE
1993-05-03
ABSTRACT
Bulgaria is still far away from reaching a rescheduling agreement on its $12.5 billion foreign debt and isn't likely to ever pay off the entire amount, according to Emil Harsev, deputy governor of the Bulgarian National Bank. "When you consider Bulgaria's situation of a stagnating economy and decreasing output, it's easy to see that this country will never repay these debts," Mr. Harsev said in an interview with the Wall Street Journal Europe. "That's why we need a rescheduling agreement soon to make the debt serviceable in relation to our economic potential," he continued. In 1992, with a spurt of export-led growth increasing reserves, the Bulgarian government authorized a token repayment of $80 million, representing 20% of overdue interest. The move was seen largely as a goodwill gesture to get talks with the London Club of commercial banks, which holds 80% of the debt, moving again. One year earlier, Bulgaria reached agreement with the Paris Club, which holds only $1.6 billion of the debt, on a 10-year rescheduling plan that allowed a six-year grace period.
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