10.01.2013

The Ministry of Finance ordered the payment of EUR 879,849,875 in favour of the holders of sovereign Global Bonds with maturity 15 January 2013, Deputy Minister of Finance Karina Karaivanova announced at a briefing. The sum comprises principal to the amount of EUR 818,465,000 and the last coupon payable amounting to EUR 61,384,875. Furthermore, the Ministry of Finance ordered also the payment of almost USD 45 million under the USD denominated Global Bonds with maturity 15 January 2015. Thus the payments in respect of the sovereign foreign debt total around EUR 914 million.

Karina Karaivanova specified that the money to repay the matured issue had been raised during the successful return of Bulgaria on the international financial markets in July last year. Then the Ministry of Finance placed a 5-year Euro Bond with 4.25% coupon, i.e. 3.25 p.p. lower than the coupon of the bonds with maturity 15 January 2013. The Deputy Minister of Finance further specified that thus the state saved the budget around BGN 60.4 million of interest payments annually.

After the payments made Bulgaria\'s government debt has been reduced by around EUR 815.5 million from almost EUR 6,966 billion to EUR 6,147 billion. Karina Karaivanova said that thus the debt/GDP ratio dropped by almost 2 p.p. from 16.72% to 14.75%. Our country continues to hold the second place under this indicator among all EU Member States. According to her the good 2012 budget performance provides assurance to continue the conservative policy of government debt management. The Ministry of Finance has already cancelled the planned two issues of 3-month government securities totaling BGN 150.

Karina Karaivanova stated that the government debt management policy did not foresee any issue of sovereign bonds on international capital markets.