Bulgaria Will Take On a New Debt of BGN 500 million

Business » FINANCE | October 4, 2021, Monday // 17:10
Bulgaria: Bulgaria Will Take On a New Debt of BGN 500 million BNR

The Ministry of Finance and the Bulgarian National Bank have announced a date for a new auction, at which the country will offer Government securities with a maturity of 5 years at a total value of BGN 500 million. This was officially announced today by Bulgaria's central bank. The amount of the issue is a record for Bulgaria's domestic market.

The experts have determined October 11 for debt collection, and according to the BNB announcement, they want a zero interest rate on the securities. This will not be a precedent, and only a month ago a new issue of 5-year securities was reopened, which were sold at a negative yield of 0.15%. In practice, this means that investors pay the state to be able to borrow money. The same return with negative values ​​is now expected to be achieved.

So far, the country has withdrawn BGN 1.3 billion this year, and if this auction is successful, the amount will swell to BGN 1.8 billion. No special surprise is expected from creditors - banks, pension funds, insurance companies.

The debt ceiling for this year was set at BGN 4.7 billion, which will finance the treasury deficit. However, it is unlikely that all this money will be withdrawn, given that the budget is in the red for the third month.


We need your support so Novinite.com can keep delivering news and information about Bulgaria! Thank you!

Finance » Be a reporter: Write and send your article
Tags: million, BGN., Bulgaria., Bulgarian National Bank., Ministry of Finance., debt., amount., billion., budget
Expats.bg All Are Welcome! Join Now!
Bulgaria news Novinite.com (Sofia News Agency - www.sofianewsagency.com) is unique with being a real time news provider in English that informs its readers about the latest Bulgarian news. The editorial staff also publishes a daily online newspaper "Sofia Morning News." Novinite.com (Sofia News Agency - www.sofianewsagency.com) and Sofia Morning News publish the latest economic, political and cultural news that take place in Bulgaria. Foreign media analysis on Bulgaria and World News in Brief are also part of the web site and the online newspaper. News Bulgaria