In a region of teetering economies facing serious fiscal crises, Bulgaria has achieved a notable success with its sovereign bond issue to the amount of EUR 950 M last week. Thus begins the Financial Times’ article dedicated to our country’s return to the international debt markets.
According to the newspaper, the fact that the sale was oversubscribed five times, and the lowish yield, are indicative of confidence in Bulgaria's longer-term fiscal outlook. Yields on Bulgaria's bonds maturing in January for example are currently at 7.5 per cent, and other countries in the region are under much more pressure, the authors of the article analyse and make comparisons with issues in our neighbouring countries. Since the economic crisis in 1997, Bulgaria has generally followed a highly respectable fiscal path, delivering regular surpluses in the last decade.
The newspaper emphasizes that the budget deficit has been reigned in - the Government targets 1.3 per cent for 2012. In addition it is pointed out that public debt is just 16 per cent of GDP. The bond success could be an important step in the country's recovery, the newspaper concludes.