Recovery is underpinned by realism

Bulgaria was experiencing considerable economic and political difficulties until the beginning of 1997, but there are now signs that a new mood is beginning to emerge. The new government has worked closely with international financial institutions, and it has been possible to introduce a currency board financial system. It has been possible to eliminate hyperinflation, and there has been a significant rise in hard currency reserves and therefore the domestic money supply. However, Bulgaria still faces serious problems, including high levels of poverty and foreign debt.