Bulgarian Parliament OKs EUR 1.5 B Bridge Loan

Finance Minister Goranov has argued Bulgaria urgently needs the money to cover deficits at the Deposit Insurance Fund (DIF). Photo by BGNES

Lawmakers have given the thumbs up on a six-month bridge loan worth BGN 3 B (EUR 1.5 B).

The country has picked Citibank NA (London), HSBC Bank PLC, and local units of Societe Generale and UniCredit to provide the sum.

Under the agreement signed October 8, Bulgaria is granted a bridge loan of EUR 1.5 B to be paid off with government securities in 2015.

The deadline to pay off could be extended by six months.

MPs were divided over the loan, with government related parties (conservative GERB, right-wing Reformist Bloc, left-wing ABV and nationalist Patriotic Front) voting to approve, the main opposition party BSP and the third-largest force DPS abstaining.

The Movement for Rights and Freedoms (DPS) warned that Bulgaria has made a habit out taking on fresh debt.

The ruling axis however argues the money is needed mainly to cover deficits at the Deposit Insurance Fund (DIF).

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