Bulgaria's foreign debt reached its highest level for the past 17 years but the same time the Bulgarian economy has never been so stable, Banker newspaper reported.

In the middle of 2006 the debt accumulated by the state and by private companies has reached 16.3 billion euro. In 1990 when Bulgaria stopped paying its foreign debt the amount reached 13 billion euro, Banker reported.

The main difference between the situation then and now was that all of the debt in 1990 was accumulated by the state.

Starting 1998 the situation began changing, Banker reported. Since privatisation started in the country nearly 80 per cent of the previously state-owned assets became private property.

Bulgarian companies also started receiving large-scale foreign debts, something that no one would have imagined before 1998, Banker reported.

The state debt decreased at fast pace since 2001. By mid-2006 it went down by nearly 6.2 billion euro.

Private foreign debt increased. Since 2001 the amount went up by 2.8 billion euro to reach 12.5 billion euro, Banker reported.