Bulgaria's Eurozone Aspirations: Fitch Ratings Affirms Positive Outlook
Fitch Ratings, a leading credit rating agency, has affirmed Bulgaria's Long-Term Foreign-Currency Issuer Default Rating at 'BBB' with a Positive Outlook
With its public-debt levels among the lowest in the EU and government pledges to cut the budget deficit “Bulgaria has been partly shielded” from the sharp drop in stock and bond prices on global markets this week, Bloomberg reported on Wednesday.
Commenting on the potential impact of a Greek default on Bulgaria, Dmitri Barinov, a money manager at Union Investment Privatfonds GmbH in Frankfurt, has told the newswire: “The risks for Bulgaria aren’t negligible, but I see them as being well contained.”
His comment followed a report by Morgan Stanley Research analysts, who said earlier this week that Bulgaria is potentially exposed to a Grexit contagion more than its neighbors in Southeast Europe. With Greek banks consituting a substantial part of foreign claims in Bulgaria, Romania and Serbia “we think that the banks are by far the most serious potential channel of contagion”, Morgan Stanley analysts said. According to the report, Bulgaria, Romania and Serbia may have to counter “large deposit outflows” from the units of Greek banks if Greece defaults and leaves the eurozone.
However, local regulations mean that “the Greek parent can’t simply take cash out at will,” Bloomberg quoted Richard Segal, head of emerging-market strategy at Jefferies in London, as saying.
Bloomberg also quoted the opinion of Regis Chatellier, a London-based director of emerging-market credit strategy at Societe Generale, who said that while Greece’s exit from the eurozone could put banks in Bulgaria and Romania “somewhat under pressure,” the EU and the ECB would implement some measures to prevent contagion.
You can read the full article "Greek Euro Exit Risk Gets You Down? Find Relief in Bulgaria Debt" by Bloomberg here.
We need your support so Novinite.com can keep delivering news and information about Bulgaria! Thank you!
As the clock ticks down to midnight tonight, Bulgarians are reminded that April 30th marks the final day for filing their 2023 personal income tax returns
Bulgaria's National Bank has disclosed the country's external debt figures, revealing a notable increase in gross foreign debt at the end of February 2024
Fitch Ratings, a leading credit rating agency, has affirmed Bulgaria's Long-Term Foreign-Currency Issuer Default Rating at 'BBB' with a Positive Outlook
The National Statistical Institute reports that in 2023, the poverty line for the entire country stood at 637.92 BGN per person per month within households
Bulgaria's long-anticipated entry into the Eurozone may face a delay, as the country is unlikely to meet the inflation criterion required for the introduction of the euro on January 1, 2025
The price of retail lamb in Bulgaria has surged by 8.4% on an annual basis, according to statistics released by the Ministry of Agriculture and Food, with data sourced from SAPI indicating an average price of BGN 25.27 per kilogram as of April 10
UN Happiness Report: Bulgaria's Astonishing Leap in Rankings
Bulgaria: 3 Regions With Lowest Life Expectancy - EU Report 2022