Bulgaria CDS Spreads Hit 11-mo Record High
Bulgarian CDS spreads have widened to an eleven-month high, reaching 376.5 points, just a day after Brussels expressed concerns over the country's statistical performance, data shows.
Yet the CDS spreads, which are one of the strongest indicators of how risky a company or a country is, remain much lower than the levels they reached at the end of 2008 and the beginning of 2009 amids the peak of the global economic crisis.
“The most insulting thing is that Bulgaria is now considered much more risky than Hungary. It is even more insulting that countries with low credit ratings such as Peru and Turkey are viewed on the market as much less risky,” former Finance Minister Krassimir Katev commented for the national radio on Wednesday.
“I personally doubt that Eurostat will discover any irregularities, but the chaotic way in which the government announces every new obligation prompted Brussels to react in this way,” he added.
The EU finance ministers agreed on Tuesday to give the European statistical office new powers to make sure EU governments comply with limits on their borrowing.
European Union Economy Commissioner Olli Rehn expressed concerns over Bulgaria's statistical performance and said a mission with audit powers will be sent to Sofia.