Bulgaria to Borrow EUR 360 M from German Banks

Bulgaria will seek a EUR 360 M syndicated loan from German banks to finance its budget shortfall, the government announced.

Last month Bulgarian Finance minister, Petar Chobanov, said the government is considering a syndicated loan arranged by foreign banks to be an option for financing the budget.

He added that the cabinet will choose a foreign bank to arrange the loan and to attract foreign investors as lenders, but it was only on Wednesday that the government confirmed these will be German banks.

“Obtaining additional external financing by placing debt under German legislation will lead to diversification of debt funding sources and the investor base of the Bulgarian public debt. This will also prevent concentration of future debt payments,” the government said in a statement on Wednesday.

No official information on yield and terms of the issue was immediately available.

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