Towards the end of the film, the actress's character Tutar – who is Borat's (Sacha Baron Cohen) daughter – interviews the former New York City Mayor, before he follows her into the bedroom and she helps him take off his recording equipment.
Giuliani is then seen lying on the bed and appears to put his hands in his trousers as Cohen bursts into the room, saying that she is 15-years-old and "too old for you" – Bakalova is 24.
Giuliani has since called the scene a "complete fabrication", saying in response: "I was tucking in my shirt after taking off the recording equipment. At no time before, during, or after the interview was I ever inappropriate. If Sacha Baron Cohen implies otherwise he is a stone-cold liar."
The actress has now spoken about the moment in a new interview with The New York Times, revealing that she had heard of Giuliani before making the movie.
"I knew who he was, because 9/11 is something everybody should know," she said. "It's one of the hardest moments in recent history. But I'm not American, I don't get into American politics. I don't think I'm that informed with the situation in America and its political system. Sacha has been living here for a long time. I trust him."
Speaking about preparing for the scene, Bakalova continued: "We'd been talking a lot about different scenarios. How should I act, this way or this way? What should I do? What is smarter? But in all of the scenarios, I was confident that Sacha will save me and he will save the scene, so it's not going to be a disaster. He's my guardian angel."
Revealing that she was "nervous" about filming, the star clarified of the moment and whether it was inappropriate: "I saw everything that you saw. If you saw the movie, that's our message. We want everybody to see the movie and judge for themselves."
Pressed on whether she herself thought it was inappropriate, Bakalova said: "I believe it's my back [to the camera] there, we can see what he's doing in the mirror.
"Sacha jumped into the room quickly, because he'd been worried about me. So, if he were late, I don't know how things were going to go. But he came just in time."
The actress was then asked whether Giuliani thought Tutar was 15 when he agreed to the interview, Bakalova replying: "I'm not the person who is actually booking these people, so when we get to the scene, I'm just doing the scene, without introducing myself. I'm not sure what he knows or does not know."
She added: "Movies like this are showing people's true colours. It's going to show Jeanise's true colours. It's going to show the real character of [Judith Dim Evans], the lady in the synagogue. It's going to show Rudy's real character. You're responsible for your own decisions. So, no, I don't feel bad."
Borat Subsequent Moviefilm is available to watch now on Amazon Prime Video.
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