12.09.2011

The government debt/ GDP ratio was 14,9% at end-2010, as pointed out in the Government Debt Review 2010 published in section "Statistics"/ "Annual Review of Government Debt" on the website of the Ministry of Finance. The review also contains a short analysis of the main parameters of the Bulgarian economy for the previous year.

The nominal amount of the government debt at end-2010 was EUR 5385,0 million of which EUR 2011,5 million domestic government debt and EUR 3373,5 million external government debt. The debt has increased by EUR 557,5 million in absolute terms compared to the previous year (2009). This is due mainly to the new domestic and external financing and the exchange rate differences upon debt re-evaluation.

The currency structure of the government debt has kept the trend of an increase in the relative share of BGN-denominated debt instruments. This contributes to limiting the risks arising from exchange rate changes on international capital markets. At end-2010 the currency structure of the debt was as follows:

• 17,1% - in USD;
• 54,4% - in Euro;
• 25,7% - in BGN;
• 2,8% - in other currencies.

As regards the interest composition of the government debt in 2010, the greatest is the share of debt with fixed interest rates - 79,7%, while that of debt with floating interest rates is 20,3%.

At the end of 2010 the government guaranteed debt was EUR 637,1 million, including EUR 1,4 million domestic and EUR 635,7 million external government guaranteed debt. It has increased by approximately EUR 25,0 million in nominal terms compared to the end of 2009 which is due to the disbursements under already signed credit agreements as well as to the Student Loans Programme launched on the grounds of the Student and Doctoral-Candidate Loans Act.

The government guaranteed debt/GDP ratio has stabilized at 1,8% in the past few years.

The government debt management policy pursued in 2010 follows the general directions of the main government priorities for ensuring stable budget stance, keeping macroeconomic stability and maintaining the government debt at a quantitative and qualitative level that ensures fiscal sustainability and fulfilment of the Maastricht criteria.