Bulgaria to raise external borrowing by 1.2B euro in 2012

Bulgaria to raise external borrowing by 1.2B euro in 2012

Bulgaria's Government plans to boost external borrowing by 1.2 billion euro in 2012, the country's Finance Ministry said on November 18 2011.Most of the funding is expected to come from new bond sales to ensure financing for the repayment of eurobonds aggregating about 800 million euro, which fall due in early 2013. The bond issues will lead to a decline in the country's debt a year later, thus partly offsetting the increase to be recorded in 2012.The ministry provided scant information about the planned bond sales given the volatile foreign markets and fears that speculators could artificially raise the yield on Bulgarian securities, which could make external funding more expensive.The Government also plans to obtain funds under existing and new loan agreements with foreign financial institutions, the statement said.About 120 million euro of the total will be secured as part of a Structural Programme loan agreement with the European Investment Bank (EIB) to back projects funded under operational programmes.The country is also gearing up for the start of a co-operation strategy with the World Bank for the period 2011-2013, which is expected to ensure three loans worth 80 million euro each under the Development Policy Loan (DPL) programme for implementing reforms in the railway sector.The Government's strategy also envisages the redemption of 202 million leva in foreign state loans.Bulgaria also plans to issue 1.22 billion leva worth of securities on the domestic market in 2012 and to repay 735 million leva in outstanding debt, meaning that net financing will make up 484 million leva. (Source: The Sofia Echo)

Previous Next
Test Caption
Test Description goes like this
Cookies Preferences
Choose Type of Cookies You Accept Using

These cookies are required for the website to run and cannot be switched off. Such cookie are only set in response to actions made by you such as language, currency, login session, privacy preferences. You can set your browser to block these cookies but our site may not work then.

These cookies allow us to measure visitors traffic and see traffic sources by collecting information in data sets. They also help us understand which products and actions are more popular than others.

These cookies are usually set by our marketing and advertising partners. They may be used by them to build a profile of your interest and later show you relevant ads. If you do not allow these cookies you will not experience targeted ads for your interests.