October 20, 2023
Bulgaria’s position in the EU, with one of the lowest debt levels, remains intact, as per the most recent official data from Eurostat in July 2023. The Ministry of Finance (MoF) made this announcement.
At the close of the first quarter in 2023, Bulgaria’s general government debt-to-GDP ratio was a mere 22.5%, with only Estonia boasting a more meager debt load. In contrast, all the other 25 member states have higher levels of debt, with the EU average clocking in at 83.7%, as indicated in the MoF statement.
Additionally, it’s worth noting the progressive decline in Bulgaria’s debt levels over the past years. In 2017, the debt was at 25.1% of GDP, dropping to 22.1% in 2018, 20.0% in 2019, and rising slightly to 24.5% in 2020. By 2021, it receded to 23.9%, and in 2022, it stood at 22.9%. As the year progresses, it is anticipated to reach approximately 22.0% by the end of 2023.
The Law on the State Budget for 2023, sanctioned by the National Assembly on July 28th this year, outlines a maximum limit of 7.5 billion leva for the new state debt. Approximately 3 billion leva of this amount is allocated for debt refinancing, a commitment the caretaker government already fulfilled in January of the current year. This includes obligations related to the maturity of 7-year Eurobonds issued in March 2016 and the maturity of 10.5-year domestic government securities, released in January 2013.
The remaining approximately 4.5 billion leva is designated to cover the cash deficit, equivalent to 2.5% of GDP, as specified in the budget.
Bulgaria’s commendable progress in reducing its relative debt levels is further underscored by its ascension in the EU ranking among countries with the lowest debt. Prior to 2017, Bulgaria held the third position in the EU. In 2018, it surpassed Luxembourg and now secures the second place, as confirmed in the official announcement.
On October 12, Bulgaria received the top ranking in the EU, according to the “Economist” magazine, for its remarkably low debt servicing costs.
Source: novinite.com
Legal Notice: The information in this article is intended for information purposes only. It is not intended for professional information purposes specific to a person or an institution. Every institution has different requirements because of its own circumstances even though they bear a resemblance to each other. Consequently, it is your interest to consult on an expert before taking a decision based on information stated in this article and putting into practice. Neither Karen Audit nor related person or institutions are not responsible for any damages or losses that might occur in consequence of the use of the information in this article by private or formal, real or legal person and institutions.
