Mapping Bulgaria's Future : Inclusive Growth and Productive Jobs

The newly elected government takes office at a time of stark economic challenges. The outfall of the global economic crisis threatens to undo many of the achievements of the recent past, derail convergence with the European Union (EU), and heighten social vulnerability. The election of a strong government offers a timely opportunity to restore and broaden the economic reform agenda which had been initiated before EU accession and but lost some momentum since 2007. Decisive action could shorten the length and reduce the depth of the crisis by restoring market confidence and improving economic prospects. Restoring the health of the economy and returning to the convergence path requires concerted policy actions to unwind economic imbalances and advance much needed structural reforms. The two-way policy response would aim to: 1) bring about fiscal consolidation and restructure public finances, strengthen financial stability, and mitigate the social impact of the crisis in the short-run; 2) and step up structural reform to address deep seated economic problems which both magnify the impact of the international crisis and hamper longer-term convergence prospects in the medium-run. The World Bank stands ready to support the structural transformation of Bulgaria. The Government is strongly committed to maintaining the currency board with the euro adoption as an exit strategy. Yet, a continued worsening in private and public sector balance sheets could trigger a loss of confidence in the currency board. As international investors take a closer look at the vulnerabilities of emerging economies, there is a large premium on strong domestic policies. While financial markets may have under-priced the risks relative to the fundamentals in Bulgaria and other countries in the region prior to the crisis, this under-pricing has now disappeared. The pendulum is now likely to swing into the opposite direction.

Bibliographic Details

Main Author:	World Bank
Language:	English en_US
Published:	Washington, DC 2009-12
Subjects:	ACCOUNTING, ACCOUNTS RECEIVABLE, ASSET MANAGEMENT, BALANCE SHEET, BALANCE SHEETS, BANK REGULATIONS, BANKING SECTOR, BANKING SYSTEM, BANKRUPTCIES, BANKRUPTCY, BANKRUPTCY PROCEDURES, BENEFICIARIES, BENEFICIARY, BOND, BOND MARKET, BUDGET CONSTRAINTS, BUDGET SURPLUS, BUDGET SURPLUSES, BUDGETING, CAPITAL ADEQUACY, CAPITAL INFLOWS, CAPITAL INVESTMENT, CAPITAL SHORTAGES, CAPITALIZATION, CENTRAL BANK, CENTRAL BANKS, COLLATERAL, COMMERCIAL BANKS, COMMODITY PRICES, CONSUMER CREDITS, CONSUMER PROTECTION, CONSUMER PROTECTION LEGISLATION, CORPORATE DEBT, CORPORATE LAW, CREDIT CONSTRAINTS, CREDIT DEFAULT, CREDIT DEFAULT SWAP, CREDIT GROWTH, CREDIT LINES, CREDIT QUALITY, CREDIT REPORTING, CREDIT RISKS, CREDITOR, CREDITOR RIGHTS, CREDITORS, CURRENCY, CURRENCY BOARD, CURRENCY MISMATCHES, CURRENT ACCOUNT DEFICIT, CURRENT ACCOUNT DEFICITS, DEBT RESTRUCTURING, DEMAND FOR CREDIT, DEPOSIT, DEPOSIT INSURANCE, DEPOSITOR, DEPOSITORS, DEPOSITS, DOMESTIC BANKING, DURABLES, ECONOMIC POLICIES, EMERGING ECONOMIES, ENTERPRISE CREDIT, ENTERPRISE PERFORMANCE, EQUITY INVESTMENTS, EQUITY MARKET, EXCHANGE RATE, EXPENDITURE, EXPENDITURES, EXTERNAL DEBT, FINANCIAL CRISIS, FINANCIAL INFORMATION, FINANCIAL INSTITUTIONS, FINANCIAL MANAGEMENT, FINANCIAL MARKET, FINANCIAL MARKETS, FINANCIAL SECTOR, FINANCIAL STABILITY, FINANCIAL SUSTAINABILITY, FINANCIAL SYSTEM, FINANCIAL SYSTEMS, FISCAL CONSOLIDATION, FISCAL CONSTRAINTS, FISCAL DEFICIT, FISCAL DEFICITS, FISCAL POLICIES, FISCAL POLICY, FIXED INVESTMENT, FOREIGN BANKS, FOREIGN CAPITAL, FOREIGN CURRENCY, FOREIGN CURRENCY EXPOSURE, FOREIGN DIRECT INVESTMENT, FOREIGN EXCHANGE, FOREIGN EXCHANGE RESERVE, FOREIGN INDEBTEDNESS, FOREIGN INVESTMENT, FOREIGN INVESTORS, FRAUD, GOVERNMENT BUDGET, GOVERNMENT FINANCING, GOVERNMENT POLICIES, GOVERNMENT SPENDING, GROSS DOMESTIC PRODUCT, HEALTH CARE, HEALTH SECTOR, HOLDING, HOLDINGS, HOME MARKETS, HOUSEHOLD INCOME, HOUSEHOLD INCOMES, HUMAN CAPITAL, INCOME LEVEL, INFLATION, INFORMATION SYSTEM, INFORMATION TECHNOLOGY, INFRASTRUCTURE DEVELOPMENT, INFRASTRUCTURE INVESTMENT, INSTITUTIONAL INVESTORS, INSURANCE, INTELLECTUAL PROPERTY, INTEREST RATES, INTERNATIONAL INVESTORS, INVESTING, INVESTMENT CLIMATE, INVESTMENT DECISIONS, INVESTMENT FINANCING, INVESTMENT PORTFOLIO, INVESTMENT PORTFOLIOS, INVESTMENT PROJECTS, INVESTMENT REGULATIONS, LABOR MARKET, LABOR MARKETS, LAND OWNERSHIP, LEGAL FRAMEWORK, LIQUIDITY, LIVING STANDARDS, LOAN, LOCAL CURRENCY, LOCAL GOVERNMENTS, LOSS OF CONFIDENCE, MACROECONOMIC ENVIRONMENT, MACROECONOMIC POLICY, MARKET BORROWING, MARKET CONFIDENCE, MARKET DISCIPLINE, MARKET INFORMATION, MARKET INTEGRATION, MARKET REFORMS, MARKET RISK, MASTER PLAN, MATURITIES, MATURITY, MEDIUM TERM EXPENDITURE, MEDIUM TERM EXPENDITURE FRAMEWORK, MINISTRY OF FINANCE, MORTGAGES, MOVABLE PROPERTY, NATIONAL BANK, NON-PERFORMING LOANS, NONPERFORMING LOANS, OUTSTANDING STOCK, PENSION, PENSION FUNDS, PENSION REFORM, PENSION SYSTEM, PENSIONS, POLICY CREDIBILITY, POLICY RESPONSE, PORTFOLIO, PORTFOLIO QUALITY, PRIVATE CREDIT, PRIVATE DEBT, PRIVATE INVESTMENT, PRIVATE SECTOR, PROFIT MARGINS, PROPERTY RIGHTS, PRUDENTIAL REGULATION, PUBLIC FINANCE, PUBLIC FINANCES, PUBLIC FINANCIAL MANAGEMENT, PUBLIC INVESTMENT, PUBLIC INVESTMENTS, PUBLIC SPENDING, RATE OF RETURN, RECURRENT EXPENDITURE, REFORM AGENDA, REFORM STRATEGIES, REGULATORY AUTHORITIES, REGULATORY FRAMEWORK, REGULATORY OVERSIGHT, REMITTANCES, RESERVE REQUIREMENTS, RESERVES, RETURN, RETURNS, RISK MANAGEMENT, SAFETY NET, SECURITIES, SHAREHOLDERS, SHORT-TERM BORROWING, SHORT-TERM EXTERNAL DEBT, SOCIAL ASSISTANCE, SOLVENCY, STOCK EXCHANGE, STOCK MARKET, STOCK MARKET PRICES, STOCKS, STRUCTURAL REFORM, STRUCTURAL REFORMS, STUDENT LOANS, SWAP, TAX, TELECOMMUNICATIONS, TOTAL DEBT, TRADE UNIONS, TRANCHES, TRANSPARENCY, WITHDRAWAL, WORKING CAPITAL,
Online Access:	http://documents.worldbank.org/curated/en/2009/12/13155432/bulgaria-mapping-bulgarias-future-inclusive-growth-productive-jobs-policy-notes https://hdl.handle.net/10986/19475
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