Bulgaria's public debt falls 0.16% m/m to EUR 6.92bn at end-June 2013

By bne IntelliNews July 29, 2013

Bulgaria's public debt, excluding state guarantees, decreased by EUR 11.6mn in June (0.16% m/m decline) to EUR 6.92bn at the end of the month, the finance ministry reported. In annual terms, however, the debt was 14.7% higher and accounted for 16.96% of the full-year GDP forecast versus 15.2% a year earlier.

Compared to the previous month, in June Bulgaria's domestic debt - increased by 0.63% to EUR 3.2bn, while external public obligations fell 0.84% to EUR 3.7bn. On a yearly basis, however, both domestic and external debt grew - by 29.2% and 4.5%, respectively. Internal debt is expected to decrease in August when a BGN 800mn (EUR 409mn) bond the government issued in February matures.

The publicly-guaranteed debt decreased to EUR 451.2mn in June, declining by EUR 4mn from its level in May. It accounted for 1.1% of the GDP.

A budget revision bill raising Bulgaria's 2013 deficit to 2%/GDP from current 1.3%/GDP and lifting the new debt ceiling by BGN 1bn passed first reading in Bulgaria's parliament last week. The government intents to issue a portion of the new debt on the domestic market and to sell another part of it to foreign investors. However, it will be able to do so only if the bill becomes a law.

According to unofficial reports, the second reading vote will take place on Wednesday, July 31. The bill will most likely receive parliament approval but it will become a law only if President Rossen Plevneliev signs it. Plevneliev has not yet revealed his stance on the government's budget revision proposal. Still, his decision will be crucial since most of the anti-government protesters who have been on the streets of Sofia for more than 40 days now have called on the president to avert the planned fiscal rebalance.

General government debt, EUR, mn Dec-10 Dec-11 Dec-12 Jan-13 Feb-13 Mar-13 Apr-13 May-13 Jun-13
total 5,385 5,946 6,991 6,196 6,659 6,885 6,890 6,937 6,926
domestic 2,012 2,458 2,547 2,591 3,027 3,099 3,144 3,189 3,209
external 3,374 3,488 4,445 3,605 3,633 3,786 3,746 3,748 3,717
m/m, %                  
total 2 5.91 -0.62 -11.37 7.48 3.39 0.08 0.68 -0.16
domestic 2.4 8.3 0 1.7 16.8 2.4 1.5 1.4 0.63
external 1.78 4.28 -0.96 -18.89 0.76 4.22 -1.05 0.05 -0.84
y/y, %                  
total 11.5 10.4 17.6 5.2 11.5 12.7 12.3 14.4 14.72
domestic 30.7 22.2 3.6 7.4 20.3 18.3 20.2 28.9 29.24
external 2.5 3.4 27.4 3.6 5.1 8.4 6.4 4.3 4.58
Source: Central bank                  


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