Ensuring a more efficient use of the eurofunds, conducting reforms that improve the competitive power of the country and binding the wage increase rate to productivity increase, are some of the measures to help Bulgaria’s economy in the situation deteriorated due to the international economic crisis, said Andrea Casini, COO of UniCredit Bulbank and Deputy Chairman of the Euroclub with the Bulgarian Chamber of Commerce and Industry. In his presentation to the Euroclub yesterday evening he focused on banks’ key role in support to the Bulgarian economy at times of reduced liquidity worldwide.

UniCredit Bulbank has always been responsible and far-seeing in terms of lending and we as a financing institution have always attached priority to industrial rather than housing projects. Although in the last years construction was among the most profitable sectors, we have always preferred to support the creation of a new production because it is what brings long-term value, Casini explained. He also pointed out that UniCredit Bulbank even now credits actively its good clients and the Bank has increased its focus on renewable energy projects.

UniCredit Bulbank, which recently signed the contract for servicing bank under FLAG, has become strongly committed to support the public sector and the utilization of the eurofunds. Bulgaria is expected to receive above 6 billion euro from the European Union between 2007 – 2013. If these funds are utilized it will amount to approximately 5% of the country’s GDP on the average for the years until 2012”, Casini pointed out. He explained that this capital flow may considerably ease off the impact of the huge trade deficit on the current account. In addition, the access to these funds may have an extremely good effect on the Bulgarian economy at times when cash resources are extremely expensive on the international markets.

The first signs of overcoming the crisis in Eastern Europe will be witnessed as early as the beginning of 2010, however Bulgaria will need at least three more years in order to regain its economy growth up to the potentially achievable levels, Casini said. He also pointed out that fortunately the Bulgarian banks were facing the crisis prepared – with excellent capitalization and profit levels. This will help them to be a factor of stability in the economy and will enable them to continue to attract foreign financing. Casini pointed out at the decisive measures of the governments in almost all countries that will prevent turning the crisis from recession into depression.

UniCredit Bulbank is a partner of the Euroclub with the Bulgarian Chamber of Commerce and Industry as of November 2003 when the club joined the international network of European clubs of UniCredit Group. The Euroclub with the BCCI was set up in 2000 at the initiative of the Euro Info Center under the auspices and with the financial support of the European Commission. The club is an official partner and intermediary between the European institutions, the Bulgarian business and the Bulgarian authorities and its members comprise representatives of each of these groups, diplomats and journalists.