Bulgaria Reduced its National Debt to 24%Finance | July 7, 2017, Friday // 12:40| views
The ministry of finance arranged a payment of more than EUR 990 million to holders of five year Bulgarian Euro bonds, issued at an annual coupon of 4.25% on 9 July 2017.
The transaction included a tranche of 7-year bonds worth 1.144 billion euros at an interest coupon of 1.875% and a tranche of 12-year bonds worth EUR 850 million at a 3% interest coupon.
By making the payment, Bulgaria's sovereign debt was reduced by EUR 950 million, from 12,884 to 11,934 billion euros. This represents a decrease in the ratio of debt to gross domestic product by almost two percentage points, respectively, from 25.9% to 24%. Thus, the state budget will save debt servicing costs amounting to EUR 40.375 million per year, the Ministry of Finance said.
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