Bulgarian duty free shops will continue working under tighter control, according to an International Monetary Fund (IMF) agreement with the Cabinet. At a conclusive IMF news conference, mission experts announced the conclusion of the second evaluation mission over the two-year agreement between Bulgaria and the fund, Dnevnik newspaper reported.
One of the IMF requirements was for the closure of all duty-free shops located outside airports. The requirement changed to stricter control after discussions with Finance Minister Plamen Oresharski and his team. Duty-free shops increase corruption and divert money from the national budget, IMF mission head for Bulgaria Hans Flickenschield said.
The Cabinet also accepted an engagement to work for a three per cent budget surplus this year. This surplus will be used as a buffer against the significant current account deficit, Flickenschield and Oresharski said. During the previous IMF mission to Bulgaria the two sides could not reach an agreement concerning the percentage. Bulgaria maintains the right to vary the percentage in case the current account deficit changes.