The Ministry of Finance announced that it will conduct an auction for ten-year government securities totaling EUR 210 million on May 11. According to the Bulgarian National Bank’s website, the bonds are associated with issue BG 20 400 26 218 and carry an annual interest rate of 3.5%. This upcoming auction represents the ninth placement of new domestic debt since the start of the current year.
Overall, the total volume of new debt raised by the government since the beginning of the year has reached EUR 1.2 billion. Should the planned auction be successful, the total issued debt for the year is projected to reach EUR 1.41 billion. The Finance Ministry’s records indicate that the specific issue BG 20 400 26 218 was previously placed on two occasions earlier in the year.
In February, EUR 150 million in government securities were issued, achieving an average annual yield of 3.84%. Subsequently, an offering of the same amount took place in April, which secured an average annual yield of 4.18%. Legislation governing public finance allows the Council of Ministers, under the conditions of an extended budget, to incur new government debt.
This borrowing is restricted solely for the purpose of refinancing existing obligations, and the amount cannot exceed the annual repayments due on already incurred debt.
Topics: #ministry #eur #year
