Galery

2

1

Will the Greek economic crisis affect your investments in Bulgaria? Is there a possibility the National Bank of Greece to withdraw from the Bulgarian market?

No. It is possible to affect the investments in the international market. I want to emphasize this, without trying to compare what we do in the National Bank and other Greek banks with what has happened in other countries. Such sharp movements have occurred with other banks on other markets. On one hand, they have put their fingers in the fire of toxic products in their budgets and on the other they managed the risk in a very wrong way. This is not the situation with us. It is true that this is a challenging period when we should be careful and control our balance sheets and our place on the market. However, our logic for Bulgaria and other countries in the region, is not accidental. Bulgaria is very important for us because of our great and very successful presence there – in the United Bulgarian Bank, but also in the field of lease with Interlease company, which is the largest company in the branch. This presence was built after many years of efforts. We have invested capital, we explored the long term abilities of Bulgaria, we believe in the development of its economy Either way, a bank can not thrive if the economy of the country is not doing well. We have invested in people, know-how, infrastructure, and procedures. This is not random. It takes time and resources and the aim is long-term result. Nothing threatens our presence in Bulgaria.

What is your inside look for the Eurozone? Will other countries follow the path of Greece? What will happen to the common European currency? Will it exist after five years or not? What will be the euro-dollar ratio?
 
Hardly anyone can say what will be the euro-dollar ratio and I am not sure if this is so important. My opinion, and the opinion of many factors in the economy, is that the Euro is under question now. Here, however, we will have to divide things to short-term problems and long-term prospects. Certainly, there must be changes in the management of the Eurozone and they are already being discussed. Yes, it is true that we learned a few new lessons. For example, the requirement for deficits and debt, as defined in the Maastricht Treaty, is clearly not sufficient. There should be some mechanism to protect us from an imbalance between the member states. I believe that Europe will make these changes, it will try to resolve the problems that arose. Let us not forget that the Euro is on trial in a period of global recession. It was not forced with similar circumstances so far. I think what happens now is a chance to make some changes, but in no case to destroy the whole project called Euro. Because I continue to believe that this project has very important economic benefits in terms of payments, transparency, investment, mergers. But we are obliged to improve some of its features from now on. I think that  the European Commission acts in this direction to improve the Eurozone. There are countries which have been criticized for their macroeconomic indicators. But if someone asked me if we should change the general concept of the Euro I wolud say no. But we have to improve the management of the Eurozone for sure.
 
What are the chances of Bulgaria to join the Eurozone? What is your advice based on the Greek experience – to enter the Eurozone or to wait outside?

This is a difficult question, with regard to the advice. What I can say is that Bulgaria has a significant progress, if seen chronologically, in the achievement of long macroeconomic stability. Surely it has problems arising from the global crisis, because no country in the world remains unaffected by a global crisis. Bulgaria will have to solve these problems and continue to work for the purposes it set itself. I can say, as a Greek, that the effectiveness of the Euro, despite all this instability, continues to be a very important project. I wish this to happen to Bulgaria. Either way, the IMF has prepared the country for the way the Eurozone works. As a representative of a bank that operates in your country we will do whatever we can to help the country achieve its objectives. The presence in the Eurozone would strengthen the Bulgarian economy.

As for the BGN-Euro ratio, it has remained on one level for quite some time and many analysts believe that it should be changed. What is your opinion?

I will not comment this issue. The Bulgarian authorities probably have studied this major project in depth for many years. I believe that the present Bulgarian economy enjoys the benefits of synchronization with the European environment. I think people who govern the country should continue to analyze this issue and to decide which is the right choice.