National debt jumps by EUR 2bn in just four years
Government debt rose by EUR 2.15 billion for the past four years and at the end of July amounted to EUR 6.9 billion, Ministry of Finance data shows.
At the same time, Bulgaria's fiscal reserve has decreased by BGN 2.14 billion to BGN 5.57 billion. Accordingly, due to the increase in debt and the reduction of available money, the overall fiscal position of the Treasury for four years has deteriorated by BGN 4.2 billion.
According to the law on the state budget, the fiscal reserve should be at least BGN 4.5 billion at the end of the year.
However, at the same time, the last months of the year are expected to bring the largest state expenses since it is then when the Treasury traditionally settles most of its current obligations to the business. Besides reimbursing VAT, the Oresharski government also intends to clear old state debts to private companies that have remained unpaid in recent years. The aim is to inject money into the economy and to reduce intercompany indebtedness. That is why, besides increasing the fiscal reserve, the budget update stated that the Treasury may place an additional debt of BNG 1 billion this year.
On a Monday auction was held the state successfully issued one-year government bonds with a nominal value of BGN 300 million at an interest of just 0.6%. The Treasury manages to find domestic financing under very good conditions. That is why it was increased primarily the domestic government debt which has increased in the last four years: from EUR 1.77 billion to EUR 3.2 billion. At the same time, the external debt increased only by EUR 375 million to EUR 3.7 billion, according to the Ministry of Finance data.
In late July, the national debt amounted to just 17.1% of the GDP. According to this indicator, Bulgaria ranks second among the EU countries after Estonia.
Currency the composition of the public debt is as follows:
52% in Euro
33.8% in BGN
12.8% in U.S. dollars
1.4% in other currencies
Source: http://www.standartnews.com/
(05.09.2013)