International Monetary Fund Role in the Bulgaria’s Economic Governance

Using event studies and discussions with officials, this paper analyses Bulgaria’s experience with the International Monetary Fund since joining in September 1990. Bulgaria made a successful transition from plan to market, supported by a series of financial arrangements with the Fund, prior to its accession to the European Union on January 1, 2007, albeit with a derogation not to use the euro as national currency. Since 2008, the Bulgarian authorities have limited relations with the Fund to surveillance and technical assistance provided at request. The country has adopted the euro on January 1, 2026, but it struggles to achieve a sustainable model of economic governance and development, demonstrating inconsistent policies regarding its strategic rationale. Meanwhile, the IMF's role and surveillance methods have evolved since the Global Financial Crisis. We conclude that if used wisely, the Fund's capacity-building programs can help strengthen Bulgaria’s strategic economic governance in the context of the uncertain geopolitical environment of the 2020s.