Budget Committee votes up to €3.8 billion in new debt amid liquidity crisis fear

The parliamentary Budget Committee has approved, at second reading, a ceiling of up to €3.8 billion in new government debt.

The measure sparked intense debate, with lawmakers from We Continue the Change, Democratic Bulgaria and Vazrazhdane demanding detailed written calculations to justify the borrowing.

Deputy Finance Minister Lyudmila Petkova warned that the fiscal situation in August and September is critical and that, without the additional funds, the state would be unable to guarantee current payments beyond pensions and social benefits.

In an effort to reach a compromise, Asen Vassilev proposed reducing the borrowing ceiling to €2.1 billion, a figure calculated on the basis of the government's verbally stated financing needs for July and August.

Edited by Darina Grigorova