Bulgaria's Parliament OKs Issuance of Debt worth BGN 3 BFinance | June 6, 2014, Friday // 12:32| views
Photo by BGNES
The Bulgarian Parliament has approved the issuance of debt worth EUR 1 493 000.
This was made possible through the adoption of a contract between Bulgaria and Citigroup Global Markets Limited, HSBC Bank PLC and JP Morgan Securities PLC, according to reports of Sega daily.
The contract defines the relations between the state and the banks related to the issuance of bonds.
The issuance of debt was backed by 108 votes, with 38 votes against and 4 abstentions at the second reading in Parliament on Friday.
The money raised from the bonds are earmarked for covering the maturity in early 2015 of the global bonds of the state worth USD 1086 B and covering the planned budget deficit of BGN 1.4 B
The decision on the issuance of debt worth around BGN 3 B was put to the vote by the parliamentary budget committee on Thursday.
The issuance of new debt was approved by the Bulgarian Parliament at the adoption of the 2014 state budget in end-2013.
"External debt assumption is a normal operation which is used by all countries. Bulgaria's public debt for 2013 amounts to18.6% of the GDP against the backdrop of an average of 90.6% for the Eurozone" said Petar Kanev, socialist MP and Deputy Chair of the parliamentary budget committee, in a Wednesday statement.
In 2014, Bulgaria can take on BGN 3.9 billion worth of new external debt, as the 2014 state budget stipulates.
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