Bulgaria's Ex Right-Wing PM Thumbs Up for Eurobond Issue

Finance | June 8, 2012, Friday // 12:50|  views

Ivan Kostov led a reformist right-wing cabinet (1996-2001), which is credited with throwing out the ex-communists who had pushed the country to the brink of financial crisis in the 90s. Photo by Sofia Photo Agency

Bulgaria's former prime minister, die-hard right-winger Ivan Kostov, has praised the cabinet for its decision to tap international markets.

"This move will send a positive message. The fact that Bulgaria refinances its debt on the international market and does not seek other ways means that we are confident enough and not worried," Kostov, who is credited with throwing out the ex-communists who had pushed the country to the brink of financial crisis in the 90s, said in parliament on Friday.

"This assessment of the international markets will stabilize the country's credit rating if we do it the right way," he added.

Kostov criticized the left-wing opposition for "making a mountain out of a molehill" and exaggerating their role for the budget surplus Bulgaria amassed during their term in office.

Bulgaria's parliament ratified on Friday the contracts with BNP Paribas, HSBC and Raiffeisen as mediators for the eurobond issue that the country plans to float this year.

The motion, tabled by the government, was approved by 101 members of parliament, 34 voted against, while 12 abstained.

Bulgaria plans to tap international markets to raise funds to repay the first tranche of about EUR 835 M (USD 1.07 B) in 11-year eurobonds maturing on January 15, 2013.

The bonds offered on international markets will be worth up to EUR 950 M.

The interest rate will range between BGN 8-12 M per month, Finance Minister Simeon Djankov explained.

BNP Paribas, HSBC and Raiffeisen will be appointed to advise the Bulgarian state as well as manage the sale of the bond.

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Tags: ECB, European Central Bank, Raiffeisen, Simeon Djankov, finance minister, government, Bulgaria, recession, Eurozone, employment, unemployment, direct foreign, investments, economic growth, GDP, loans, fiscal reserve, budget deficit, eurobonds, BNP Paribas, HSBC, Ivan Kostov


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