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Bulgaria reduced its national debt to 24%

Staff Writer |
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 July 9, 2017.

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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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