30.09.2015

The government debt management policy implemented in 2014 followed the main Government priorities related to provision of effective debt financing sources for covering government needs, while preserving controlled increase of sovereign debt and maintaining the stability of the key debt parameters.

As of the end of 2014, the nominal value of the government debt stood at BGN 22,102.3 million, of which BGN 13,850.6 million external and BGN 8,251.8 million domestic debt. In nominal terms the government debt marked a growth of BGN 7,983.8 million compared to the level recorded at the end of 2014. The main factors for its increase were the debt operations performed during the year both on the domestic market of GS and on the international capital markets to raise the financial resources required. The ratio of government debt to GDP at the end of 2014 was 26.9% against 17.6% as at end of December 2013.

The issue of 10-year benchmark Eurobonds on the international capital markets, the assumption of new external debt in the form of a short term Bridge to bond loan in euro, and the placing of EUR-denominated treasury bonds on the domestic market are the main factors behind the recorded positive changes in the currency structure of government debt. The EUR-denominated debt increased at the end of 2014 to reach 70.1% of the total government debt amount, while the debt denominated in BGN, USD and other currencies decreased to 20.8%, 8.4% and 0.7% respectively.

The interest structure of government debt registers an increase of the liabilities with fixed interest rate coupons. Their share in total debt as at 31 December 2014 was 92.4%. The portion of liabilities with floating interest rates at the end of the year was 7.6%.

The government guaranteed debt as at the end of 2014 decreased in nominal terms by BGN 191.1 million compared to the level of December 2013, and reached BGN 651.2 million, of which BGN 44.1 million domestic and BGN 607.1 million external government guaranteed debt. The registered decline resulted from the redemptions on external government guaranteed debt during the year. The ratio of government guaranteed debt to GDP is 0.8%.

You can see the Annual Government Debt Review for 2014 in section "Statistics".