Bulgaria faces rising external debt and high poverty risks

Bulgaria is facing significant economic challenges regarding both national debt and social welfare. According to preliminary data from the Bulgarian National Bank, the country's gross external debt reached 69.814 billion euros by the end of July. This figure represents 56.1 percent of the projected GDP, marking a 26.4 percent increase compared to the previous year.

The debt structure has seen a notable shift, with short-term obligations rising by 109 percent to 19.362 billion euros. A significant portion of the increase in Central Bank obligations is attributed to the distribution of euro banknotes following Bulgaria's accession to the Eurozone on January 1.

On the social front, Zornitsa Rusinova, Chair of the Economic and Social Council, reported that approximately 29 percent of the Bulgarian population lives at risk of poverty. Despite increased resources for disability support and social assistance over the last decade, every third child in the country remains at risk. Rusinova suggested that the current social support model may need a fundamental overhaul to ensure resources are directed effectively toward fostering independence and achieving tangible results for those in need.