[stop-imf] IMF to Bulgaria: "A natural disaster supplies no grounds for excess budget spending"

[Robert Weissman]

Provocative comments from the IMF, intriguing especially in light of
Hurricane Katrina and the certainty that the US Congress will disregard
the foolish advice from the IMF.


*Sofia News Agency
http://www.novinite.com/newsletter/print.php?id=51887
*

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IMF Firm on Bulgaria's Restricted Fiscal Spending*
_2005-09-01_
The International Monetary Fund (IMF) Mission Leader for Bulgaria Hans
Flickenschild has completed a visit here meant to introduce him with the
new government and its fiscal policy.

Last meeting on Thursday was held with Finance Minister Plamen
Oresharski who discussed with the Fund's officials the enforcement of
the measures as laid down in Bulgaria's agreement with the IMF.

Earlier the same day Flickenshild met with Prime Minister Sergey
Stanishev. "A natural disaster supplies no grounds for excess budget
spending," Hans Flickenshild told journalists after the meeting.

He encouraged Bulgarian authorities to continue with the efforts to
overcome the aftermath of recent devastating floods, but demanded for
restriction of the amount spent on after-floods reconstruction.

Under its latest agreement with the IMF, Bulgaria has committed to
achieving a 1% budgetary surplus in 2005. Finance Minister Plamen
Oresharski, however, has warned flood costs could keep the country from
meeting that target.

The next mission of the IMF to Bulgaria is scheduled in the middle of
October.