The annual growth rate of Bulgaria's gross external debt quickened to 5.2% as of end-October from 3.4% in the previous month, central bank data showed. Total foreign debt amounted to €38.7bn, equal to 96.1% of the 2014 GDP forecast.

Foreign debt increased by €1.8bn since the start of the year, €190mn of which were accumulated in October alone.

Long-term external debt climbed 11% y/y to €29.4bn due to the growth in public sector borrowing. It constituted 76% of total foreign debt and 73% of the GDP forecast. Short-term debt fell 9.5% y/y to €9.3bn, equal to 23% of GDP. The ratio of Bulgaria's short-term external debt to its foreign reserves declined to 59.4% at end-October from 70.8% a year earlier.

The external liabilities of the general government increased 32.8% y/y to €5.5bn and accounted for 14.1% of the total. Meanwhile, the private sector's external borrowing rose 1.7% y/y to €33.2bn. The public sector's foreign debt will decrease later this month due to the scheduled retirement of $1.1bn worth of dollar-denominated bonds, but it will be higher compared to its level from end-October due to the €1.5bn the government raised from four foreign banks in December. 

The foreign debt of commercial banks fell 1.7% y/y to €5.7bn, with the sector's short-term debt edging up 0.1% y/y to €4.3bn and its long-term liabilities decreasing 6.7% y/y to €1.4bn.

The foreign debt of the real economy declined 0.1% y/y to €12bn and intercompany lending related to direct investment advanced 2.1% y/y to €16bn.