No need for Bulgaria to alter peg
SOFIA (Reuters) – The International Monetary Fund said it saw no reasons for Bulgaria to change or abandon its lev currency peg to the euro but warned about possible financing problems due to the global credit crunch. Some analysts say Bulgaria’s economic imbalances, including a vast current account deficit and hefty foreign borrowing in the private sector, could put pressure on the central bank to let go of its currency board regime. IMF’s representative to Romania and Bulgaria, Juan Jose Fernandez-Ansola, said this was not necessary but warned the new European Union member needed careful economic policies to safeguard its ability to finance the external shortfall.
