This paper evaluates Bulgaria's Request for Stand-By Arrangement (SBA). Macroeconomic developments remain broadly favorable, although a rise in the external current account deficit is a concern. Real GDP growth is estimated to have moderated to about 41/2 percent in 2001. The authorities have requested a two-year SBA in the amount of SDR 240 million, or 37 percent of quota. The requested SBA would be centered on the currency-board arrangement, a continuation of prudent fiscal and incomes policies, and an acceleration of privatization and other structural reforms.