Bulgarian Finance Minister Leaves Bond Issue for 2011

Finance | June 15, 2010, Tuesday // 17:22|  views

Bulgarian Finance Minister Simeon Djankov is considering selling bonds in 2011. Photo by BGNES

Bulgaria is considering selling bonds amounting to EUR 1 B on the international markets in 2011, according to Finance Minister.

The revenues from the bond issues will be used for financing infrastructural projects and growth stimulus, Simeon Djankov said Tuesday.

He added the government might issue bonds for EUR 1 B before the end of 2010 if the situation with the Bulgarian state budget gets worse. However, in his words, this is a very remote possibility.

“Next year might be more suitable for issuing debt, especially Eurobonds. The revenues, however, will be used for specific infrastructure projects rather than filling the budget gap,” Djankov said.

In the draft bill for revision of the Bulgarian budget for 2010, which is currently under discussion, the government has envisaged an option for issued debt of EUR 1 B (appr. BGN 2 B).

The government draft budget revision bill, which is to be voted by the end of June, targets a deficit of 4.8% of GDP on a cash basis and 3.9% of GDP under EU accounting rules, far wider than initial estimates.

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Tags: Simeon Djankov, bond issue, Budget 2010


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