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Bulgaria will take out loans totaling $942.7 million

Staff writer |
Bulgaria will take out loans totaling BGN 1.5 billion ($942.7 million) from the internal market. Bulgarian ministry of finance has already managed to place an issue of 1-year government securities for EUR 400 million, maturing on December 3, 2015.

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The major part of the securities are planned to be sold this week with two auctions, EUR 400 million each, Capital Daily reports.

The timing is coordinated with the fact that on November 30th is the end of the maturity period of the bonds emission for BGN 1.2 billion and investors have significant liquidity.

This is the money from the bonds emitted by the Bulgarian state in the summer of 2014 for securing liquidity to First Investment Bank (FIBank). On December 3rd is the second auction for EUR 400 million, at which the state will offer 9-month state securities.

The last auction for the year is planned for December 8 with 10.6-year state securities at the amount of BGN 55 million.

Apart from these measures for liquidity, the state has negotiated a bridge loan for EUR 1.3 billion; it will be secured by Citibank, HSBC, Societe Generale Expressbank and UniCredit Bulbank and it is expected to be received by the state in the beginning of the month writes American Chamber of Commerce, Bulgaria.

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