Reuters: Bulgaria Picks 2 Local, 2 Int'l Banks for Bridge LoanFinance | November 25, 2014, Tuesday // 21:09| views
The Finance Ministry in Sofia. Photo by BGNES
Two Bulgarian and two local banks have been chosen to provide a bridge loan worth EUR 1.3 B, two sources have told Reuters.
The country has picked Citi, HSBC and local units of Societe Generale and Unicredit, the sources, reportedly familiar with the process, are quoted as saying on the condition of anonymity.
According to their estimates the four banks have been chosen to provide EUR 1.3 B.
This is exactly the sum (equal to BGN 2.54 B) that the Finance Ministry reported last week to be the total sum of offers received on a bridge loan that Bulgaria needs to amend the budget, without elaborating.
This time the Finance Ministry has declined to comment on the banks' names, the information continues.
Sofia needs a total of BGN 4.5 B (EUR 2.3 B) to deal with a billion-worth budget cap for this year and also with the aftermath of a decision to declare Corporate Commercial Bank (KTB) insolvent.
The fresh borrowing will boost Bulgaria's public debt to 28.4 percent of GDP compared to 18 percent in 2013.
Parliament allowed the country last week to negotiate on a foreign loan of up to BGN 3 B to cover the gap at the Bulgarian Deposit Insurance Fund (in charge of repaying deposits at KTB from December 4) and to tackle the shortfall in the income statement.
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