Govt Opts for Schuldschein Loan to Cover Budget Gap

Bulgaria’s government will seek a 360 million euro ($486.72 million) Schuldschein loan from German banks to finance the budget deficit, Capital daily reported. 

The government has already approached ten German banks, the daily wrote, quoting unnamed sources. Talks with the banks are expected to be completed by October 20.

Last week the government said it has mandated finance minister Petar Chobanov to organise the loan, adding that it would place debt under German legislation. This would diversify the country’s debt funding sources and the investor base of the Bulgarian state debt, preventing the concentration of future debt payments, it said.