Cause and Effect in European Politics and Law

9.4 bn levs is the state debt of Bulgaria

euinside, February 5, 2010

The accumulated external and internal debt of Bulgaria by the end of December 2009 was approximately 9.4 bn levs (4.8 bn euro), according to the data of Industry Watch Bulgaria. Compared to a year earlier, the state debt is almost unchanged. Currently the debt has increased from 14.2 to 14.4%. The fiscal reserve has dropped by 709 mn levs (363.58 mn euro) compared to the end of 2008 and is now 7.7 bn levs (3.94 bn euro) which is a fall from 12.6 to 11.4%.

In 2009 the debt of the private sector to the banks in Bulgaria has reached 50.6 bn levs (25.94 bn euro). This calculation is average for the year and does not concern only the volumes made in the end of the year. Compared to 2008 the debt of the private sector is increasing by 5.6 bn levs (2.87 bn euro). Over 60% of this increase is the share of the credits for the business. Households have increased their debt to banks by 2.2 bn levs (1.12 bn euro). The largest share of this debt is of mortgages. In 2009 they accounted for a little over 8 bn levs (4.10 bn euro) on the average.

The number of the registered people without jobs by the end of 2009 has reached 338,000 (out of less than 7 bn people population of which some 3 mn eligible for work) people which is with 106,000 more compared to the end of 2008. It is interesting, as Industry Watch shows, that on an annual basis the increase of unemployment is relatively constant - the increase was similar in November 2009, compared to November 2008. This can be interpreted as a signal that the highest levels of unemployment have been reached already, the analysts from Industry Watch have commented. According to their initial forecast for 2010 in the months with highest unemployment, the number of the registered jobless people would remain around 350,000.

Another interesting fact is shown - the comparison with the end of 2006 when the level of unemployment was almost identical with the end of 2009. Then, however, almost 200,000 or two thirds of the unemployed were without jobs for more than a year. Now their number is 87,000 - which means that the share of the long-term unemployed has dropped by one fourth.