Source: Financial Times
While the economic crunch is devastating all European countries, and putting down on the knees the economies of most Eastern EU member states, Bulgaria stands as an anchor of stability. The national currencies of Poland, Hungary, the Check Republic, Latvia, Lithuania and Estonia are hitting record lows. The citizens of Eastern EU member states are now facing growing repayment bills because their national currencies have plummeted against major world currencies. And just when they need more income to meet those bigger repayments, a deep recession is hammering their income. The Bulgarian Lev remains untouched and safe in this economic chaos thanks to the currency board and the government’s restricted fiscal policy in the past few years. Bulgaria is one of the biggest net importers of oil as a part of the world consumption. For this reason, the decreased oil prices should soften the pressure on the balance of the current account.
The politicians and managers of the central bank in Bulgaria are determined to keep the present national currency rate, a strategic decision fully supported by the IMF. The currency reserves of the Bulgarian central bank outnumber substantially the passives of the Lev.
Instead of France, investors are now looking further afield to secure a bargain. Places previously considered too politically volatile or far away are starting to attract British buyers. Thailand, Bulgaria and Venezuela are some of the destinations seeing increased interest from Brits. Opportunities to make capital gains in so-called ’emerging markets’ has accelerated this phenomenon.
Bulgaria may not have been top of the list for second homes over the years, and the European Commission’s concerns over rampant corruption in the country cannot have inspired confidence among would-be investors. But it is one of the locations benefiting as investors begin to search out emerging property markets as the potential for making a profit in more traditional markets evaporates.