in the first days of its life, the caretaker government with Finance Minister Lyudmila Petkova took out a loan for 200 BGN million. This is the first domestic loan for Bulgaria in about a year and a half and was placed at high interest. The issue is in the form of 3-year government securities and was planned in the last days of Asen Vasilev's tenure as finance minister at the end of last month.
The new short-term issue is generally unconventional for Bulgaria's emission calendar compared to standard 5- and 10-year government securities. The last such emission was realized by Bulgaria in February 2016.
The average annual yield achieved is now 3.01%. For comparison, in 2016 it was only 0.36%, which also reflects the increase in interest rates in recent years.
According to the calculations in Budget 2024, Bulgaria can take out a new state debt this year up to BGN 11.7 billion. It will probably be realized both on the domestic market and on the foreign market. Otherwise, this year the repayment of maturing domestic debt of BGN 380 million, as well as international debt in the amount of nearly BGN 3 billion, is planned. – both withdrawn in 2014, economic.bg.
recalls
Orders with a total nominal value of BGN 512.5 million are now accepted for participation in the auction, incl. non-competitive orders of BGN 122 million. The achieved coverage ratio, which expresses the interest in the issue, is 2.56. For comparison, in the issue of 2016, the coefficient is 1.7. The Ministry of Finance indicates that “high interest” has been reported.
Banks acquired the largest amount of government securities at the auction – 46%, followed by pension funds with 11%, insurance companies – 8%, contract and guarantee funds – 6% and other investors – 29%. 8 primary dealers of government securities participated in the auction. The Ministry of Finance indicates that it will offer for sale additional quantities of the issue.
From the results of the auction, an impression is made of the large share bought by the so-called other investors – citizens and companies.