The issue of Bulgarian eurobonds will most probably be postponed until next year, Kaushik Rudra, director of Sovereign Strategy for Europe, Middle East and Africa at Lehman Brothers, says in an interview for the Free Europe Radio. Now is not the time for it because the market is very disturbed over Argentina and Turkey. From a financial viewpoint, Rudra believes Bulgaria does not need money, so unless the market conditions improve Bulgaria should not float a eurobond issue this year. As far as the very issue of Bulgarian eurobonds is concerned, there is enough demand for Bulgarian assets on the international markets, Rudra says. Currently Bulgaria has only Brady bonds and many investors cannot invest in them. So when Bulgarian eurobonds appear, especially denominated in euro, there will be a big demand for such papers. The effect of the problems in Argentina and Turkey on the attitude to Bulgaria is indirect. But when the investor is worried about what is happening with the assets of the emerging markets as a market segment, and Argentina occupies about 20% of this segment, then he simply stays away of this market as a whole. And no matter whether this concerns stable countries like Bulgaria or troubled countries like Turkey, the investor simply does not want to take the risk. According to Rudra, the signing of a new agreement between Bulgaria and the IMF is important for the issue but at the same time he believes that the investor will buy Bulgarian eurobonds even if the country does not have an agreement with the fund. And this will continue as long as the government presses on with reforms and follows a zero budget deficit policy.

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