Bulgaria to seek 360 mln euro loan from German banks
SOFIA Oct 2 (Reuters) - Bulgaria will seek a loan from German banks of up to 360 million euros ($487 million) to finance its budget shortfall this year, the government said on Wednesday.
Finance Minister Petar Chobanov said last month that Bulgaria will raise up to 400 million euros in a syndicated loan or a Eurobond this year but made no mention then of the idea of a loan from German banks.
"The realisation of additional external financing of up to 360 million euros through placing debt under German legislation will lead to diversification of debt sources for financing and the investor base of the Bulgarian state debt, and it will also avert concentration of future debt payments," the government said in a statement on Wednesday.
The loan will be sought from German banks with investors also able to participate, the finance ministry said on Wednesday, declining to elaborate.
The Socialist-led cabinet in August raised its fiscal deficit target to 2 percent of gross domestic product from an initial 1.3 percent to help to stimulate the economy and help the most disadvantaged in the European Union's poorest country.
Economists said the proposed loan would be cheaper and faster to arrange than a bond issue.
With public debt at 16 percent of GDP at the end of August, Bulgaria is one of the EU's least indebted members. ($1 = 0.7393 euros) (Reporting by Tsvetelia Tsolova; editing by Stephen Nisbet)
- Housing, jobs data weaken, but overall economic picture still upbeat
- Target cyber breach hits 40 million payment cards at holiday peak |
- 'Duck Dynasty' anti-gay fallout sparks debate on religion, tolerance
- UPDATE 3-Saab wins Brazil jet deal after NSA spying sours Boeing bid
- Zuckerberg to sell Facebook shares worth about $2.3 billion |