Milen Velchev, Bulgaria"s former finance minister from the centrist government of Simeon Saxe-Coburg, has issued an alert over "the country"s crumbling financial stability".

"Bulgaria records a decrease in foreign investments, which is indicative not only of a lack of new investors, but also shows that those already here are shedding their Bulgarian assets," Milen Velchev said at a press briefing of the National Movement for Stability and Prosperity on Wednesday

Among the factors that keep investors away from Bulgaria Velchev pointed out the shrinking fiscal reserve, the credit rating of the country, which is under constant threat and the demonstrative raids in the headquarters of respected companies, such as the power utility E.On.

"What Bulgaria needs are urgent negotiations with the International Monetary Fund to prop up the crumbling financial stability," Velchev stressed.

Speaking on behalf of the party"s economic team, Vladimir Karolev drew parallels between the ruling of the current center-right government and the politics of Zhan Videnov"s cabinet, which is responsible for the severe economic crisis Bulgaria went through between 1995 and 1996.

"With a budget gap as wide as 4.8% of the gross domestic product, the government takes us back to the times of Videnov"s government," Karolev said, referring a period of low living standards, decreased food and energy supplies and hyperinflation.

Karolev stressed that Bulgaria passed a 2010 budget planning for a 0.7% deficit, but was forced to revise that target.

The centrist party, which was part of the ruling government for eight years, starting with an overwhelming election victory in 2001, accused the current cabinet of populism and leftist policy.

"The financial and economic teams of our party are very much concerned about the decision of the government to tap into the fiscal reserve to fill in the budget gap and battle the deep recession," the leader of the party Hristina Hristova commented.

The statement came a day after it became clear that Bulgaria"s government has left loopholes in the revised 2010 budget bill to make possible tapping into the fiscal reserve below the minimum threshold.

The budget bill, which the government approved on Wednesday, sets the minimum fiscal reserve at BGN 4.5 B at the end of 2010, but allows for tapping into it below that level during the year.

Bulgaria operates in a currency board regime, under which the lev is pegged to the euro, and is obliged to keep a fiscal reserve. At the end of March it stood at BGN 6.3 B, flat month-on-month, and down from BGN 7.95 B in the same period a year ago, data showed.