21.12.2011

In 2011 the yield on Government Securities (GS) has dropped along the whole maturity curve, while the 10½-year maturity GS yield reached a record-breaking level. This is a guarantee for the stability of government finances, reported Deputy Minister of Finance Boryana Pencheva, who had a meeting with the CEOs of banks-primary dealers of GS. In 2012 too the Ministry of Finance will maintain its active policy in respect of debt management, a policy that this year has ensured predictability both in terms of the budget and in terms of investors on the government debt market. This policy will continue and the MoF will offer investors a wide range of instruments in 2012. The Government would not issue debt as an end in itself, but predictably and in a balanced way, Deputy Minister Pencheva stated.

For the first time this year innovative government debt management instruments have been used such as GS buy-back and switch operations. Boryana Pencheva reminded that short-terms securities had been issued.

The Ministry of Finance has approved all candidates who applied for GS primary dealers. The primary dealer selection commission, set up by order of the Minister of Finance and chaired by Deputy Minister Pencheva has ascertained that the candidates meet the criteria contained in the Guidelines for Selection, published by MoF. In the period 13 - 16 December applications were filed by Allianz Bank Bulgaria EAD, DSK Bank EAD, Corporate Commercial Bank AD, United Bulgarian Bank AD, Municipal Bank AD, First Investment Bank AD, Reiffeisenbank Bulgarian AD, CIBank AD, Societe Generale Expressbank AD, CitiBank N.A. - Sofia Branch, UniCredit Bulbank AD, Central Cooperative Bank AD and Eurobank EFG Bulgaria AD. 

Deputy Minister Boryana Pencheva presented diplomas of honor on behalf of the Minister of Finance to the primary dealers with the greatest share of GS bought in 2011 - Societe Generale Expressbank AD and UniCredit Bulbank AD.