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World Bank Pours USD 150 M into Bulgarian Economy
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The International Bank for Reconstruction and Development (IBRD) is to lend USD 150 M to Bulgaria in support of country's payment balance.
The Bulgarian MPs approved Wednesday the signing of the loan agreement under the PAL 3 project.
The loan aims to provide support of short-term strategy and reforms, meant to decrease poverty among Bulgarian population, and to lead to economy growth.
This is the third in a series of PALs that is providing a single umbrella of support to reforms across different sectors of Bulgaria's economy.
The PAL program is comprised of three loans for a total of USD 450 M. PAL 1 aimed to support the Government's program to sustain economic growth, create employment, and reduce poverty. PAL 2 will aim at strengthening public administration, the judiciary, and anti-corruption initiatives.
The main objectives of the PAL program are the achievement of average annual growth rates of 4.5-5.0 percent during 2002-05, the reduction of the poverty rate by half by 2005 compared to 2001, and decrease in unemployment from 18.1 percent in 2001 to 12-14 percent in 2005, while making substantial progress towards EU accession.
The PAL is key component of the Bank's assistance strategy for Bulgaria, which envisages financial support up to USD 750 M over a period of three years, together with a package of analytical and advisory services. |
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