Bulgaria to contract new debt of BGN 500 million
The Ministry of Finance and the National Bank of Bulgaria have announced the date of a new auction, in which the country will offer 5-year government securities for a total value of BGN 500 million . This was officially announced today by the central bank of Bulgaria. The amount of the issue is a record for the Bulgarian domestic market.
Experts have determined October 11 for debt collection, and according to the BNB’s announcement, they want zero interest on the securities. This will not be a precedent, and only a month ago a new issue of 5-year securities was reopened, which was 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 should now be achieved.
So far, the country has withdrawn BGN 1.3 billion this year, and if this auction is successful, the amount will increase to BGN 1.8 billion. No particular surprises are expected from creditors – banks, pension funds, insurance companies.
The debt ceiling for this year has been set at BGN 4.7 billion, which will finance the treasury deficit. However, it is unlikely that all of that money will be taken out, given that the budget is in the red for the third month.
Copyright (c) Novinite.com. Published with permission of the Big News Network News Agency