REMEMBRANCE IN TIME - Index of

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Remembrance in Time
pursued by the Fatherland Front government. Therefore, emphasis will be placed on only
one element of this policy, namely the changeover of March 1947, in an attempt to
outline its major economic, as well as social and political consequences.
One of the most serious problems the regime that seized power on September 9th, 1944
had to face was the fast growing inflation in the country. The process of devaluation of
the Lev, which had started at the beginning of the war now, in the autumn of 1944,
acquired proportions increasingly threatening the economy and society. In this respect,
the most important role was still played by external factors, in particular, the inclusion of
Bulgaria in active warfare and the implementation of the Peace Agreement signed on
October 28 th , in Moscow. Within a few weeks there was a tremendous increase in the
expenses of the state for the Bulgarian army, which took a powerful offensive in
Macedonia and Serbia, as well as for the maintenance of the numerous Soviet troops
located in Bulgaria iv . After the war ended in Europe in May 1945, despite the hopes of the
government, and personally of the Prime Minister K. Georgiev, no relief occurred in the
state payments to the command of the Soviet troops in Bulgaria. As a result of the
fulfillment mainly of these commitments a colossal budget deficit was formed, which
could not be covered in any way except through granting of credits from the Bulgarian
National Bank – i.e. by increasing the money stock in circulation, lacking the necessary
metal and commodity coverage. Despite the effects of the rationing and the measures
aimed at regulating the prices, high prices grew rapidly. According to official data, the
price index in 1945, compared to that in 1939, shows an increase of nearly six times; for
most scarce products that could only be found on the black market the increase was
twelve times v . Compared to these figures, the income growth lagged far behind; again
according to formal statistics the increase in this field was about three times compared to
the figures for 1939, which is indicative of a significant impoverishment of the
population.
Internal factors, such as the deep decline in production and trade from 1944 onwards,
also strongly contributed to the unleashing inflation in the country. In 1945 the domestic
product formed only half of that in 1943 – also a military year when the great twist at the
fronts started. The shortage of raw materials and capital and the engagement of a
significant part of the labor force in the army were the objective reasons for the
development of an acute crisis. To these, however, added must be the effect of the
measures taken by the new government – an extremely high taxation on private
enterprises and strong political and psychological pressure on the business community – a
policy that does not promote economic recovery and financial stability. The
disadvantaged trade relations with the Soviet Union consisting, broadly speaking, of
Bulgarian exports twice the size of the Soviet imports, and especially of extremely
elevated course of the ruble, further exacerbated the shortage of goods and pushing up the
prices in Bulgaria.
In this situation, the government in Sofia had neither the capacity nor the courage to
seek a way out of the severe financial situation, because it would have required to take
adequate economic actions and to resist the external pressure coming from Moscow, or to
seek help from the West. The regime reacted in what would become a typical way – by
imposing a ban on public discussion. And the slightest manifestation of dissatisfaction
with the existing situation was considered by the government as an opposition activity
and as an attempt to sabotage the actions of the people’s Power, which was usually
followed by corresponding repressions. Telling is the case of Professor Asen Hristoforov,