Caretaker Government Discusses BGN 5 B State Loan

Bulgaria's caretaker Finance Ministry has discussed the taking of a BGN 5 B loan in order to cover the expected 4.2% budget deficit, reports the 24 Chasa daily.

“I am expecting that the budget deficit will exceed 3%,” the caretaker PM Georgi Bliznashki said on Friday. “I suppose this will include sums for the stabilisation of the bank sector. I am not sure, as I haven't seen the draft yet. But we shall discuss it.”

According to the newspaper report, the state debt will be emitted on the internal market in two parts – in November and December, BGN 2.5 B each.

One of the loans would most likely be floated by Bulgaria's Deposit Insurance Fund (BDIF), which is expected to pay off at some point the deposits of up to BGN 196 000 in the troubled Corporate Commercial Bank (KTB).

Earlier this year the previous government took a BGN 3 B state loan to pay off old debts and cover the budget deficit.

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