The International Monetary Fund has revised its forecast for the performance of the Bulgarian economy this year and currently foresees a 6.5% YoY drop in 2009, compared to the last made projection for a 7.0% decline (issued in July). The IMF expectation for a further 2.5% contraction of the economy in 2010 remains unchanged. While the Fund welcomed Government’s initiatives to balance the fiscal budget, it said that downside risks still exist and it is well possible that a small fiscal deficit could emerge in 2009. The Fund projects 2010 fiscal budget to be at a deficit of 2% of GDP. According to the Fund, higher deficits should haven been possible if the economy were to contract more than expected. There were no discussions about a possible loan from the IMF.