The International Monetary Fund (IMF) agreement with Bulgaria will be extended with six months. Its term will end in March 2007.

The first three months will include effective measures and the coming three will be used for the clarification of technical parameters, Finance Minister Plamen Oresharski said.

Oresharski said the Cabinet decision took into account the advice of the European Commission. Economic policies right after Bulgaria's EU accession featured among the topics of discussion during the latest visit of the IMF mission to Bulgaria.

Bulgaria has stable macroeconomic indicators, IMF resident representative James Roaf said. The expected GDP growth rate is 5.6 per cent. Inflation is high due to high petroleum prices and excise duties, Roaf said.

Continuing structural reforms would enable the country benefit most from its EU membership, IMF analysts said.

Most structural reforms were related to labour market, privatisation, healthcare and education changes, IMF representatives said.

Another revision of the stand-by agreement between Bulgaria and the IMF is expected in August 2006.

Photo courtesy of government.bg