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Bulgaria: Currency May Be Pegged To German Mark

Sofia, 3 June 1997 (RFE/RL) -- In a move to stabilize Bulgaria's currency, the lev, Prime Minister Ivan Kostov today announced government plans to peg the currency to the German mark at a rate of 1,000 lev to one mark.

Finance Minster Mouravei Radev said the International Monetary Fund has agreed with the plan. Radev said the decision will take effect from July 1 when a currency board is set up, and after the rate has been approved by parliament. With Kostov's coalition controlling an absolute parliamentary majority, approval is considered likely.

Meanwhile, Kostov arrived in Brussels today for three-days of meetings with European Union officials. Foreign Minister Nadezhda Mihailova, who is accompanying Kostov, said the main goal of the trip is to acquaint EU leaders with Sofia's latest reforms and to get support for those reforms.