Bulgaria cuts external debt by €17 million and $184.2 million

By Jennifer Chiou

New York, June 25 - The Ministry of Finance announced that it reduced Bulgaria's external debt by buying back the country's euro- and dollar-denominated global bonds in November and December 2008 and writing them off the international registers.

According to a news release, the canceled bonds total €17 million and $184.2 million, making up the country's issues of 7½% euro-denominated bonds due 2013 (XS 0145624432) and the 8¼% dollar-denominated bonds due 2015 (XS 0145623624).

The euro notes were repurchased at 98.02 while the dollar bonds were bought back at 95.09.

The Ministry of Finance added that it may decide to repay obligations under the government debt in advance in order to achieve optimization of its servicing.

The buyback of part of the debt is a measure to mitigate the effects of the global financial crisis on the state budget, the release noted, saving interest costs of €5.3 million and $93.2 million.

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