11.10.2013

Government debt management in 2012 was complied with the key goal of the fiscal policy of enhanced control of expenditure and budget deficit in order to achieve a balanced budget in the conditions of an economic and debt crisis. This is mentioned in the Government Debt Review 2012 published on the website of the Ministry of Finance. The government debt policy has been targeted at providing the resources needed to finance the state budget and refinance the debt in circulation at an optimal price and level of risk and by preserving the level of government and government-guaranteed debt in qualitative and quantitative terms at levels guaranteeing fiscal sustainability and performance of the Maastricht criteria.

The nominal value of the government debt at the end of 2012 stood at BGN 13,673.6 million, of which BGN 8,692.6 million external debt and BGN 4,981.0 million domestic debt. In nominal terms the government debt marked a growth of BGN 2,044.4 million, compared to the level recorded at the end of 2011. The main factor for its increase was the issuing during the year of 5-year benchmark Eurobonds on the international capital markets in the amount of EUR 950 million for the purpose of ensuring the repayment of Euro-denominated global notes, maturing in January 2013. The ratio of government debt to GDP at the end of 2012 was 17.6%, which showed an increase by 2.1 p.p. compared to the level reported at the end of 2011 (15.5%).

The paper also states that the tendency noted in the above indicators is largely due to the issuing of the new benchmark Eurobonds on the international capital markets, as well as the placing of Euro-denominated Government securities on the domestic market.

• 60.2% - in EUR;
• 25.2% - in BGN;
• 12.8% - in USD;
• 1.7% - in other currencies.

As to the interest structure of government debt, it showed a continuing increase of the liabilities with fixed interest rate coupons. Their share in total debt as at 31.12.2012 was 85.8%. The portion of liabilities with floating interest rates at the end of the year was reduced to 14.2%.

As at the end of 2012 the government guaranteed debt was in the amount of BGN 1,009.3 million, of which BGN 985.9 million external and BGN 23.4 million domestic government guaranteed debt. In nominal terms the debt marked a decrease by BGN 187.9 million compared to its level of the end of the previous year, which was due both to redemption payments executed during the period under review, and to the foreign currency exchange rate difference reported at the year-end. The government guaranteed debt/GDP ratio was 1.3%.

You can find the Government Debt Review 2012 in Statistics / Annual Review of Government Debt.