On December 1, 2003, Bulgaria subscribed to the International Monetary Fund's (IMF) Special Data Dissemination Standard (SDDS). According to a 2007 IMF report, Bulgaria compiles and submits data to the IMF of sufficient quality and in a timely manner to adequately permit program monitoring and surveillance. Bulgaria meets SDDS specifications for coverage, periodicity and timeliness for all data categories. In addition, the access, integrity and quality dimensions of its data also meet IMF requirements. The IMF indicates in its 2007 review that despite recent progress, there are still areas where the country can make improvements.
General Overview
On December 1, 2003, Bulgaria became the 55th subscriber to the International Monetary Fund's (IMF) Special Data Dissemination Standard (SDDS). (IMF 2003a)
According to a 2007 IMF report, Bulgaria compiles and submits data to the IMF of sufficient quality and in a timely manner to adequately permit program monitoring and surveillance. Despite a comprehensive economic database, problems remain in national accounts and price statistics, particularly in the coverage of the emerging private sector, as well as in the balance of payments statistics, where frequent and substantial revisions have hampered economic analysis. In addition, work remains to be done in fully reconciling high frequency data on economic activity with quarterly and annual national accounts data. Annual international investment position statistics are compiled and reported to the IMF Statistics Department (STA) for publication. (IMF 2007, p. 47)
The Bulgarian National Bank (BNB), the National Statistical Institute (NSI) and the Ministry of Finance (MoF) are the main bodies responsible for dissemination of data in the country. (IMF SDDS website)
The National Statistical Institute (NSI), with technical assistance from the Organization for Economic Cooperation and Development (OECD), has established a system to compile national accounts according to the recommendations of the System of National Accounts 1993 (SNA 1993) and the European System of Accounts 1995. Problems remain in the coverage of private sector activities as well as on the constant price estimates of capital formation and external trade. However, significant progress has been made in the development of export and import deflators. The estimates at constant prices use chain-linked indices, which follow international standards (SNA 1993). (IMF 2007, p. 47)
The consumer price index (CPI) provides a reasonable measure of inflation and price developments in Bulgaria. The recommendations provided by STA missions have been broadly implemented. The flow of customs data has improved significantly in recent years and a new system for processing customs records is near completion. The lack of comprehensive labor statistics has hampered the assessment of developments in employment and wages, especially in the private sector, though there have been some recent improvements. (IMF 2007, p. 49)
In recent years, within the framework of fiscal reporting requirements for European Union (EU) accession, the authorities have made great progress on the implementation of accrual accounting for government, budgetary and statistical systems. Consolidated data on central government operations are routinely reported for publication in the GFS Yearbook and in IFS. The authorities have made progress in presenting data on a disaggregated basis, including expenditure by functional classification. In addition, a full economic classification of expenditure is now available, and the authorities have provided such data on an annual basis back to 1998. (IMF 2007, p. 50)
Statistical methods conform with key classification and valuation principles of the IMF's Monetary and Financial Statistics Manual, 2000. Consistency in the coverage of the Bulgarian National Bank's (BNB) claims on banks (which included claims on liquidated banks) and the banks' liabilities to the BNB improved in January 2003 after the BNB wrote off most of the claims on the liquidated banks. With respect to its near-term statistical program, the BNB is progressively harmonizing its data collection and compilation methods in line with the European Central Bank's framework for monetary statistics. (IMF 2007, p. 50)
Bulgaria reports monthly balance of payments data on a regular and timely basis, but data are subject to large and frequent revisions, often going several years back. In 2003, the Report on the Observance of Standards and Codes (ROSC) (released prior to Bulgaria becoming a subscriber to SDDS) identified the following problems in the balance of payments statistics: (1) residents' foreign currency accounts with resident banks are incorrectly included; (2) merchandise trade data are prone to errors and are not timely; and (3) most data are collected on a cash basis. The authorities are taking measures to address these problems. (IMF 2007, p. 50)
The Principles
Comprehensive economic and financial data, disseminated on a timely basis.
According to a 2007 International Monetary Fund (IMF) report, Bulgaria compiles and submits data to the IMF of sufficient quality and in a timely manner to adequately permit program monitoring and surveillance. (IMF 2007, p. 47)
Bulgaria meets Special Data Dissemination Standards (SDDS) requirements for the coverage for all SDDS data categories and all the data categories meet or exceed the SDDS prescribed periodicity. (IMF SDDS website)
Despite a comprehensive economic database, problems remain in national accounts and price statistics, particularly in the coverage of the emerging private sector, as well as in the balance of payments statistics, where frequent and substantial revisions have hampered economic analysis. In addition, work remains to be done in fully reconciling high frequency data on economic activity with quarterly and annual national accounts data. (IMF 2007, p. 47)
Data for all sectors - real sector, fiscal sector, financial sector, external sector, and socio-demographic - have advance dissemination release calendars and are simultaneously released to all interested parties. (IMF SDDS website)
However, the financial sector data 'Stock Market: Share Price Index' and the external sector data 'Exchange Rates' have no advance dissemination release calendars since this requirement is not applicable for these data categories. (IMF SDDS website)
Official statistics must have the confidence of their users. Transparency of its practices and procedures is a key factor.
Identification of internal government access to data and identification of ministerial commentary on the occasion of statistical releases are clear on data for all sectors - real sector, fiscal sector, financial sector, external sector, and socio-demographic. However, identification of internal government access to data does not apply to the financial sector data 'Stock Market: Share Price Index' and the external sector data 'Exchange Rates.' Moreover, identification of ministerial commentary on the occasion of statistical releases does not apply to the financial sector data 'Stock Market: Share Price Index.' (IMF SDDS website)
The dissemination of the terms and conditions under which official statistics are produced, including those relating to the confidentiality of individually identifiable information are undertaken and reported by various public agencies mostly as a service to the public. (IMF SDDS website)
Certain fiscal sector data (general government or public sector operations, central government operations and central government debt) and financial sector data (share price index) do not report information on the processes related to confidentiality of individual responses from persons, businesses and organizations to official inquiries. (IMF SDDS website)
According to the IMF, Bulgaria reports monthly balance of payments data on a regular and timely basis, but data are subject to large and frequent revisions, often going several years back. However, Bulgaria does make provision for information about revisions to data and advance notice of major changes in methodology is stated clearly on various government websites and publications. (IMF 2007, p. 50; IMF SDDS website)
A set of standards that deals with the coverage, periodicity and timeliness of data must also address the quality of statistics.
According to a 2007 International Monetary Fund (IMF) report, Bulgaria compiles and submits data to the IMF of sufficient quality and in a timely manner to adequately permit program monitoring and surveillance. (IMF 2007, p. 47)
Documentation on methodology and sources used in preparing statistics are disseminated on government and other regulatory body websites or publications. (IMF SDDS website)
Bulgaria provides for dissemination of component detail, reconciliation with related data, and statistical frameworks that support cross-checks and provide reasonableness of data. (IMF SDDS website)
Summary methodologies are provided for all data categories. (IMF SDDS website)
International Monetary Fund, "Bulgaria: Fourth Review Under the Stand-By Arrangement and Request for Waiver of Nonobservance of Performance Criteria - Staff Report; Staff Statement Press Release on the Executive Board Discussion; and Statement by the Executive Director for Bulgaria," Country Report No. 07/127, Washington, D.C.: IMF, March 2007. Available from International Monetary Fund website. Accessed on April 20, 2007. (IMF 2007)
Foreign Exchange Law, January 2000 (as amended in 2003)
Supplementary Sources
International Monetary Fund, "Bulgaria Subscribes to the IMF's Special Data Dissemination Standard," Press Release No. 03/211, December 2003. Available from International Monetary Fund website. Accessed on January 18, 2007. (IMF 2003a)
International Monetary Fund, "Bulgaria: Report on the Observance of Standards and Codes - Data Module, Response by the Authorities, and Detailed Assessments Using the Data Quality Assessment Framework," Country Report No. 03/393, Washington, D.C.: IMF, December 2003. (IMF 2003b)
Bulgaria