Bulgaria Increases State Debt by 1.7 Bln Euro
Thursday, 17 July 2014
The Bulgarian government approved on Wednesday a revision of the country's state budget, involving an increase of the state debt ceiling by 3.4 billion levs ($2.4 billion/1.7 billion euro), the finance minister said.
Previously, the state debt ceiling was set at 18 billion levs.
The decision is related to the problems of the country' s fourth largest bank, Corporate Commercial Bank (Corpbank), that was placed under special supervision over risk of insolvency on June 20.
According to the budget changes, the deficit under the consolidated fiscal programme will be increased by 725 million levs, Petar Chobanov said, quoted in a press release of the government's press office.
This is 0.9% of the planned gross domestic product (GDP) and the deficit will rise to 2.7% of GDP, he added.
Bulgaria's 2014 state budget targeted a budget gap equivalent to 1.8% of the projected GDP.