CURRENCY BOARD: TEN YEARS ON GEORGE ANGELOV KALIN HRISTOV

2 MACROECONOMIC AND FINANCIAL FRAMEWORK Euro-based currency board since mid 1997 Prudent and predictable fiscal policy oriented towards balanced budget or surplus Withdrawal of the state from the business through large scale privatization of the state owned enterprises Liberalization of the markets – free movement of goods, services and capital Government policy oriented towards improvement of investment climate

3 CURRENCY BOARD SIX YEARS ON (2003) ‏

4 CURRENCY BOARD TEN YEARS ON

5 INFLATION DYMANICS

6 BULGARIA INFLATION DYNAMICS, January 1998 – August 2007 July 1998 – August May 1991 – December 1997 Standard deviationMeanPeriod

7 GROWTH PERFORMANCE

8 GDP per capita, 1990=100

9 BUDGET DEFICIT (Per cent of GDP) ‏

10 Investments (GFCF) ‏

11 CURRENT ACCOUNT DEVELOPMENT

12 FOREIGN DIRECT INVESTMENT

13 EXCHANGE RATE CHANGE (USD per BGN) ‏

14 EXCHANGE RATE CHANGE (USD per BGN) ‏

15 EMPLOYMENT (thousands) ‏

16 EMPLOYMENT (% of population) ‏

17 UNEMPLOYMENT

18 INFLATION AND GROWTH COMPARED TO OTHER NMS,

19 INFLATION AND GROWTH COMPARED TO OTHER NMS,

20 CURRENT ACCOUNT AND FDI COMPARED TO OTHER NMS,

21 CURRENT ACCOUNT AND FDI COMPARED TO OTHER NMS,

22 CURRENT ACCOUNT AND INVESTMENT COMPARED TO OTHER NMS,

23 CURRENT ACCOUNT AND INVESTMENT COMPARED TO OTHER NMS,