Bulgaria's gross foreign debt up 5.2% y/y to €38.7bn at end-October

By bne IntelliNews January 5, 2015

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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