The main challenge for Bulgaria was to boost productivity after its EU entry, International Monetary Fund (IMF) resident representative James Roaf said.

This was needed to keep Bulgaria's economic growth and income increase, he said.

Bulgaria should continue to improve the business climate and to maintain macroeconomic stability, according to Roaf. Bank system supervision, structural reforms speeding up and reasonable fiscal policy were also needed.

Bulgaria had a high current account deficit, which would probably remain above 10 per cent of the GDP in 2007, Roaf said.

According to Roaf, IMF was aware that Bulgaria had expenses in connection to the country's EU accession, but it should maintain conservative fiscal policy.