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.
Gross external debt, eop | Jul-14 | Aug-14 | Sep-14 | Oct-14 |
€ bn | ||||
TOTAL | 38.1 | 38.3 | 38.3 | 38.7 |
Long-term | 29.1 | 29.3 | 29.1 | 29.4 |
Short-term | 9.0 | 9.0 | 9.2 | 9.3 |
Public | 5.3 | 5.3 | 5.4 | 5.5 |
Private | 32.8 | 33.0 | 33.0 | 33.2 |
Change, yoy | ||||
TOTAL | 2.2% | 2.9% | 3.4% | 5.2% |
Long-term | 7.8% | 8.7% | 8.7% | 10.9% |
Short-term | -12.5% | -12.3% | -10.3% | -9.5% |
Public | 25.6% | 26.6% | 29.4% | 32.8% |
Private | -0.8% | -0.1% | 0.2% | 1.7% |
Source: BNB |
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