Bulgaria loses billions of euro because of pervasive corruption practices, Belgrade information agency Tanjug reported.

Tanjug referred to research by the Centre for the Study of Democracy (CSD).

Shady public procurement deals, land deals and smuggling cost Bulgaria two billion euro in 2006, 10 per cent of the annual tax revenue, CSD said.

Political corruption remains the main problem, which is still unsolved.

Tanjug said that European Commission has already warned Bulgaria about the connections between high-profile criminals in the country and corrupt officials and the possibility of sanctions if the country fails to put those people in prison.

US ambassador to Bulgaria John Beyrle recently said that the insecurity resulting from corruption schemes in the country was discouraging to investors. Bribe taking is the reason for which Bulgaria lost millions from potential foreign investment projects, Beyrle said.