The Brady bond swap reduced the net present value of Bulgaria's debt by USD 80 M, and the face value of the debt by USD 270 M, Finance Minister Velchev announced. Finance Minister Milen Velchev said on Friday the swap of Bulgarian Brady bonds for Eurobonds had attracted bids worth over USD 2,600 M of old debt, which is over half of the face value of the Brady bonds. Competitive bids outnumbered non-competitive bids, Velchev said. The latter topped USD 1,120 M, which is less
than half of the total amount bid. All of them are satisfied, along with a small number of competitive bids. The total amount of swapped debt is about USD 1,327 M worth of Brady bonds. According to preliminary data, the Brady bonds swapped break down as follows: DISCs with a face value of 604 million dollars, FLIRBs with a face value of 376 million dollars, and IABs with a face value of 347 million dollars. The average prices are about 88.5 cents for IABs, about 90.5 cents for FLIRBs, and 90.5 cents for DISCs. The yield of the dollar-denominated Eurobonds maturing in 2015 is 8.25 per cent. The yield of the euro-denominated Eurobonds maturing in 2013 is 7.5 per cent.Bulgaria is the latest country to exchange its restructured debt, known as Brady bonds, for new international bonds. Similar exchanges were carried out among others by Brazil, Argentina and most recently, Peru. Finance Minister Velchev commented that the results from the transaction were better than expected.

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