10.04.2012

The Ministry of Finance rejected all offers placed at the auction held on 9 April 2012 for the sale of 5-year government securities, denominated in euros, issued on 30.03.2011 and maturing on 30.03.2016.  MoF decision corresponds to the intention voiced at the start of the year for implementing an issuance policy on the GS market so as to ensure the sources needed to finance the state budget and refinance the outstanding debt at the best price and risk level.

The total volume of offers reached EUR 45.5 million, with the initial volume of securities offered for sale being EUR 35 million. The yield demanded by market participants deviated from the indicative listing they maintained. Given the purpose for government financing at a price optimal for Bulgarian taxpayers, the Ministry of Finance decided to reject all offers placed.

This decision is a continuation of the policy pursued by MoF in its capacity of GS issuer that does not presuppose debt issuance at any cost. The status and the prospects of public finance, as well as the diversified sources of financing provide for a flexible management of Bulgaria's government debt which is one of the lowest in the European Union.

The Ministry of Finance will continue its balanced government debt management policy.