Financial and business news from Bulgaria

Launches new government debt up to €2 billion

Bulgaria has offered international capital markets a new debt of up to 2 billion euros, according to publications in the specialized news agencies. Investors have been offered 10-year and 30-year government bonds, Trud writes.
According to information from the Reuters agency, the cabinet has selected four banks to manage the sale of the papers - Citi, JP Morgan Chase & Co, BNP Paribas and Unicredit.

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The selection is not accidental, as the same group managed the last global sale of Bulgarian bonds in 2016, when securities were placed for EUR 2 billion.

With the update of the 2020 budget due to the covidcrisis, it was decided that the state treasury could end the year with a deficit of BGN 3.5 billion.

Therefore, as early as May, the Ministry of Finance was expected to release debt on international markets. At the end of August, the state coffers still had a surplus of £1.5bn and the fiscal reserve at the end of July was £10.1bn.

Currently, the Treasury has enough money, but market conditions are suitable for placing a debt that will cover future costs.

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