Concerns that the very high current account deficits of some emerging European countries, Bulgaria among them, could lead to a crisis similar to that experienced by Asia in 1997 are misplaced, Moody's Investors Service said.

Bulgaria's current account gap ballooned to a record 16% of gross domestic product (GDP) last year, up from 11,3% in 2005.

The high external imbalances and Bulgaria's fixed exchange rate vis-à-vis the euro may seem as a recipe for financial disaster, but "comparisons with Asia 1997 ignore the nature of EU integration," Moody's analyst Pierre Cailleteau said.

Bulgaria's accession to the EU reduces the risks of a sudden and extended halt to external financing, which was the major reason for the Asian crisis.

Nevertheless, Bulgaria and Romania, as well as three Baltic States, are in serious danger of a prolonged economic stagnation, which might facilitate accession to the euro-zone, but halt the process of real income convergence with the rest of the bloc.