Bulgaria Ski discussion board

Impact of Bulgarian currency devaluation...

Dec Author: posts : 13   (Beginner)Date : 07-29-09 14:55

Impact of Bulgarian currency devaluation...

..as the financial press is again full of talk about the calls for the Bulgarian Lev to be cut from its peg to the Euro, by as much as 50%, just wondered if anyone had any views on the impact. Hopefully it would mean even cheaper lift passes, beer etc, or do you think locals would push prices up, or charge in old Euro equivalents....?

Cheers, Dec
Mat Author:Mat posts : 1182   (Master)Date : 07-29-09 16:29

re: Impact of Bulgarian currency devaluation...

Zero chance of that happening given a large proportion of the population have euro denominated debt, although the economic case for it is growing stronger. The new government needs to rapidly cut expenditure to ease pressure on the current account but a standby agreement with the IMF would also help. Forget the kind of speculative pressures of the sterling ERM era as legislation has changed.

Anyway, if it does happen, expect beer to be cheaper but anything touristy to be either repriced ...
Zero chance of that happening given a large proportion of the population have euro denominated debt, although the economic case for it is growing stronger. The new government needs to rapidly cut expenditure to ease pressure on the current account but a standby agreement with the IMF would also help. Forget the kind of speculative pressures of the sterling ERM era as legislation has changed.

Anyway, if it does happen, expect beer to be cheaper but anything touristy to be either repriced in euro or at euro equivalent.

[read more]

Steve C Author:Steve C posts : 2898   (Master)Date : 07-29-09 22:18

re: Impact of Bulgarian currency devaluation...

Agree with Mat, and can add that to try to revalue the Lev would result in widespread demonstrations, even riots, as they experienced in Greece. It would be a very brave government who would try to implement it...
Dec Author: posts : 13   (Beginner)Date : 07-30-09 12:24

re: Impact of Bulgarian currency devaluation...

ok, thanks, and what about the new government, is that a positive development? They are really under pressure to combat crime, although that has always been the case I guess...
Steve C Author:Steve C posts : 2898   (Master)Date : 07-30-09 13:19

re: Impact of Bulgarian currency devaluation...

Time will tell, the primeminister was elected on a promise of identifying corruption within goverment and local goverment. They will try to appease the EU with rolling a few heads, to try to reinstate EU funding as there is 500m E earmarked for BG to assist in infrastructure. It is also said that the `old guard' from the previous goverment, some of whom were in the last communist goverment, will be put out to grass...
I suppose it is a positive move, if the promises are upheld...
The only ...
Time will tell, the primeminister was elected on a promise of identifying corruption within goverment and local goverment. They will try to appease the EU with rolling a few heads, to try to reinstate EU funding as there is 500m E earmarked for BG to assist in infrastructure. It is also said that the `old guard' from the previous goverment, some of whom were in the last communist goverment, will be put out to grass...
I suppose it is a positive move, if the promises are upheld...
The only problem i can see is the timescale, and the matter of the existing civil service, they have not changed to any great extent so protectionism will be rife, and the money involved is huge... Like i said, time will tell Cool

[read more]

Dave Author:davekl posts : 172   (Intermediate)Date : 07-31-09 08:49

re: Impact of Bulgarian currency devaluation...

Dec !!! Bulgaria, combat crime ? what crime ? sure there is corruption, not like england where the politicians are all honest ? I live here, very rarely do i lock the house or car,crime is minimal here, crime is commited by the government and big companies, that is why they joined europe, they are in good company now !!
Steve C Author:Steve C posts : 2898   (Master)Date : 07-31-09 09:06

re: Impact of Bulgarian currency devaluation...

It is strange, all the supposed mafia (mutri) interests, organised crime etc that is aimed at BG, and Dave is right, you can leave your doors open, or your car unlocked and amazingly everything is still there when you return ??? One of the largest amount of private gun ownership (official and unofficial Wink) yet one of the lowest levels of gun crime ??? No youth knife culture, respect for family and elders, community pride.....
Corruption exists and will need to be addressed but at least ...
It is strange, all the supposed mafia (mutri) interests, organised crime etc that is aimed at BG, and Dave is right, you can leave your doors open, or your car unlocked and amazingly everything is still there when you return ??? One of the largest amount of private gun ownership (official and unofficial Wink) yet one of the lowest levels of gun crime ??? No youth knife culture, respect for family and elders, community pride.....
Corruption exists and will need to be addressed but at least here they call it what it is, in the UK its called MP's expenses Cool and outside interests Wink

[read more]

Mat Author:Mat posts : 1182   (Master)Date : 07-31-09 14:18

re: Impact of Bulgarian currency devaluation...

Hmmm. Everyone I know here has been robbed. Friends live on a new development where 3 of the 6 occupied houses were robbed inside a week earlier this year. Most people have a security system linked to vanloads of armed guards because the police are so incompetent. My car has been broken into seven times. I sleep behind five sets of locked doors, which is one less than when I lived in Africa.

Crime against the person is extremely low and I feel very safe walking the streets late at ...
Hmmm. Everyone I know here has been robbed. Friends live on a new development where 3 of the 6 occupied houses were robbed inside a week earlier this year. Most people have a security system linked to vanloads of armed guards because the police are so incompetent. My car has been broken into seven times. I sleep behind five sets of locked doors, which is one less than when I lived in Africa.

Crime against the person is extremely low and I feel very safe walking the streets late at night and/or drunk - probably because lots of people carry guns. But crime against property? Its pretty bad.

[read more]

chris powell Author: posts : 13   (Beginner)Date : 08-01-09 11:27

re: Impact of Bulgarian currency devaluation...

I suppose it depends on where in Bg you live too, like the Uk some places are rougher than others......
skialot Author: posts : 13   (Beginner)Date : 08-01-09 12:28

re: Impact of Bulgarian currency devaluation...

i think it probably depends on the area. I have been in Bulgaria for 3 years now and never had any problems either with our property or with our car. I often read on the internet that car theft is high in BG but I have never meet anyone who has had their car stolen here. Is it new high spec cars that get stolen? mine is 9 years old so maybe they are not interested in it. I hope !!!