The Bulgarian government has signed an agreement with Deutsche Bank for a multi-tranche loan of 360 million euro ($486.9 million) to finance its 2013 budget shortfall, the finance ministry said.
Bulgaria will receive the money in three tranches with maturity in 2020, 2023 and 2028, the ministry said in a press release. Deutsche Bank is also an arranger of the loan along with Austrian Reiffeisen Bank International.
The government will use the money to fill budget gaps, increase its fiscal reserves and minimize its liquidity risk at the beginning of 2014, the ministry said.
The loan agreement is pending parliamentary approval.
The Schuldschein loan will result in the diversification of the debt sources and investor base of the Bulgarian state, preventing the concentration of future debt payments, according to the finance ministry.