Borissov: 'We Did Everything We Could'
GERB leader Boyko Borissov expressed his perspective on the recent negotiations surrounding the formation of a government, highlighting the challenges and compromises faced during the process
HOT: » Assessing the Legacy of Bulgaria's "Denkov" Cabinet: Achievements, Failures, and What Comes Next
Bulgarian government’s decision to seek a EUR 360 M Schuldschein loan via German banks to finance its budget shortfall does not pose a risk to the country's fiscal stability, according to the International Monetary Fund.
“My short answer is no,” IMF chief in the country Michele Shannon said in an interview for the Bulgarian National Radio on Saturday morning, when asked whether the government's plan for a loan poses a risk.
Shannon stressed that the forecast for the size of the budget deficit is slightly higher than before, but still meets the requirements, set by the Bulgarian law and the rules of the European Union.
"We have been informed that obtaining additional external financing by placing debt under German legislation will lead to diversification of debt funding sources, which is good,” the IMF chief for the country pointed out.
Still she stressed that the medium-term prospects for the budget remains an issue, which will be discussed during the IMF mission’s visit to Bulgaria next month.
Bulgaria’s government has invited offers from ten German banks as it seeks a EUR 360 M Schuldschein loan to finance its budget shortfall.
Finance Minister Petar Chobanov, who will be in charge of placing debt under German legislation, is expected to pick the bank with the lowest fee.
The names of the banks were not officially disclosed, but Deutsche Bank and Commerzbank surfaced in media reports.
The Schuldschein loan, which is not well known in Bulgaria, is provided mainly by German banks and is used to raise capital from both private corporations, municipalities and states.
The government expects to wrap up negotiations about the terms of the loan by October 20, according to media reports.
Economists have said the proposed loan is cheaper and faster to arrange.
Last month Bulgarian Finance minister, Petar Chobanov, said the government is considering a syndicated loan arranged by foreign banks to be an option for financing the budget.
He added that the cabinet will choose a foreign bank to arrange the loan and to attract foreign investors as lenders, but it was only at the beginning of October that the government confirmed these will be German banks.
“Obtaining additional external financing by placing debt under German legislation will lead to diversification of debt funding sources and the investor base of the Bulgarian public debt. This will also prevent concentration of future debt payments,” the government said in a statement.
No further details about the yield and terms of the issue were immediately available.
We need your support so Novinite.com can keep delivering news and information about Bulgaria! Thank you!
In order to protect the economic interests of consumers, there will be a period of double labeling of the prices of goods and services - in leva and in euros
As Bulgaria inches closer to joining the Eurozone, concerns arise over the implementation of rounded prices in euros, potentially impacting citizens' wallets upon adoption of the single currency
On a briefing held at the National Press Club of BTA, Nikola Ilchev, the creator and organizer of the Balkan eCommerce Summit, showed projections indicating a significant rise in Bulgaria's e-commerce sector
The Ministry of Finance in Bulgaria has revealed that the process to facilitate the exchange of levs with euros in the country will come with a hefty price tag, estimated to be at least BGN 500 million
As Bulgaria steers towards adopting the euro, economists dispel concerns over potential price increases, assuring the public that the impact on inflation will be minimal
The Ministry of Finance has released a draft law for public discussion concerning the adoption of the euro in Bulgaria. The primary aim of the proposal is to ensure a smooth and transparent transition to the European currency
UN Happiness Report: Bulgaria's Astonishing Leap in Rankings
Bulgaria: 3 Regions With Lowest Life Expectancy - EU Report 2022