Bulgaria has reportedly secured 4 billion leva in new state debt through international markets, Bulgarian National Radio (BNR) announced on Friday, citing unnamed sources.
While the Ministry of Finance has not yet confirmed the transaction, it is believed the funding was raised via the issuance of two bond tranches with maturities of nine and thirteen years respectively.
According to initial reports, the government raised nearly €4 billion (approximately 7.8 billion leva) through these placements.
Market observers noted that the bonds were issued at tightened spreads, signaling that Bulgaria managed to secure the financing under more favorable terms than in previous international offerings.
This latest debt issuance aligns with Bulgaria’s 2025 fiscal plan, which allows for up to 18.9 billion leva in new debt to be accumulated over the year.
Of that total, the government had already issued around 1.8 billion leva through the domestic market earlier in the year. With this new transaction, the country’s borrowing so far now approaches 6 billion leva — still well within the legislated ceiling.
While the Ministry of Finance has not yet issued an official statement, it is not unusual for public confirmation of such deals to be delayed.
Government debt placements, particularly those conducted on international markets, are often announced only after the completion of transactions, typically the following day.
“The issuance of bonds with longer maturities and tighter spreads is a strong indication of growing investor confidence in Bulgaria’s fiscal discipline and economic outlook,” said an analyst with a European investment bank, who asked not to be named due to client confidentiality agreements.
The move comes as Bulgaria seeks to bolster its financial reserves amid ongoing economic uncertainty in the region.
With inflation pressures subsiding and interest rates gradually stabilizing, the country appears to be taking advantage of the more favorable conditions to manage its public finances.
The nine- and thirteen-year bond maturities represent a strategic effort by the government to extend its debt maturity profile and reduce refinancing risks in the medium to long term.
Market analysts expect the official details — including coupon rates, investor demand, and geographic distribution — to be released by the Ministry of Finance within the next 24 hours.
Despite the increased borrowing, Bulgaria remains among the EU countries with comparatively low public debt levels as a share of GDP.
Still, the government faces pressure to balance investment in infrastructure and social services with fiscal prudence, particularly in the run-up to the 2025 budget implementation and potential eurozone accession talks.
The successful issuance may also reflect investor optimism following the recent positive outlook from international credit rating agencies, which have highlighted Bulgaria’s steady economic growth, improving governance, and commitment to euro adoption.
As Bulgaria continues to navigate a complex financial landscape, the latest bond deal marks a significant milestone in its ongoing efforts to strengthen macroeconomic stability and market credibility.
This article was created using automation technology and was thoroughly edited and fact-checked by one of our editorial staff members