The political crisis that shook Bulgaria for several months has found its logical and natural solution in the dissolution of the National Assembly and the scheduling of early parliamentary elections for the coming autumn. Yet the financial crisis which accompanied and further complicated and fuelled political turmoil and upheaval still seems far from its outcome. It was not made clear whether a revision of the state budget for this year was necessary and whether the country is threatened with bankruptcy or not. Also it was not made clear whether the closed Corporate Commercial Bank, fourth in terms of assets in Bulgaria, which was placed under conservatorship, is insolvent and will be bankrupt or rather is subject to recovery. Yet all this made clear that the prestigious image of Bulgaria as one of the most financially stable countries in the European Union and as a model country for frugal and prudent financial state and corporate policy has been seriously impaired.

The reasons for the failures and problems in the financial sector are many but the main one is perhaps the discrediting and lack of minimum required trust in official institutions and authorities. And when it comes to money, trust is the most valuable asset and without it there can be no stable financial system. Before the crisis with Corporate Commercial Bank, Bulgaria’s Central Bank was one of the few public institutions in which the Bulgarians had confidence. Its controversial, hesitant and delayed measures to address this problem, however, significantly reduced the degree of confidence in it, some experts even accused it of having contributed to the collapse of this commercial bank and the shaking of the banking system in this country. The prestige and authority of the central bank declined to such an extent that it waved the white flag and decided in the midst of the summer holiday month of August to ask for emergency assistance from the International Monetary Fund. Because the invitation sent by the Governor of the Central Bank Ivan Iskrov at the end of last week to the IMF head of money and capital markets department, Jose Viňals, for an emergency inspection of Bulgarian finances is no more than an admission of its own helplessness and loss of authority. And until the coming to power of the new government in late October hardly will public finances be repaired and restored, even if the current caretaker government reveals the truth about their condition as it has ambitiously promised.

There is no doubt that an objective, professional and competent external review and evaluation of Bulgaria’s financial state by the IMF will be beneficial and can be used for appropriate and adequate measures to address the problems in the country. Unlike elsewhere in the world, the IMF is a respected institution in Bulgaria and it is not seen as a defender and conduit of the interests of the world's masters and big capital. From this perspective, there is every chance that in case the IMF agrees to do the work of the government and the National Bank at all, its recommendations would be well received by both experts and politicians and also by citizens. The question remains, however, why for yet another time we seem to be incapable of putting order in our own yard ourselves.

English: Rossitsa Petcova