08.10.2013

The Ministry of Finance reopened for the 4^th time the 10.5-year benchmark issue of government securities issued on 9 January 2013 with maturity 9 July 2023. The issue is a benchmark in terms of the harmonized long-term interest rate assessing the degree of convergence which is part of the Maastricht criteria. At the auction held on 7 October 2013 a yield of 3.79% on the approved amount of BGN 50 million was reached. The coverage ratio was 2.29, with primary dealers placing offers for BGN 114.35 million. Following the auction held on 7 October 2013, the volume of the issue in circulation has reached BGN 250 million.

Banks acquired the biggest amount of GS, i.e 42.37%, followed by insurance companies with 29.12%, pension funds with 18.44%, investment intermediaries with 3.83% and other investors with 6.24 per cent. The yield of the Bulgarian long-term bond is below the respective values on bonds with similar characteristics of the EU Member States and the countries in the region: Turkey (8.81%), Slovenia (6.64%), Portugal (6.27%), Hungary (5.86%), Romania (5.30%), Italy (4.15%), Lithuania (4.20%), Spain (4.13%) and Latvia (3.89%).