Bulgaria will Release its Longest-Lasting Government Bonds

Government bonds of a 25 year repayment period will be released in 2018. This makes them the longest-lasting government bonds released since the fall of the socialistic regime.

On January 22, 2018 the Bulgarian government will released bonds on the sum of 100 million BGN (€50 million). Their repayment period will be 25 years, which makes them the longest lasting bonds in the newest history of Bulgaria. The interest on these bonds will be 2% and the maturity of the securities falls for January 2043. Dimitar Georgiev from Elana Trading shares that the big fall in interest rates, combined with the large amount of free funds may tempt pension and insurance funds to invest in a long-term project with higher return rates.

This is not the first record set in the last few months. In November, 2017 the Bulgarian government released and managed to successfully sell 4 year bonds with a negative interest rate of (-0.19%). The reasons behind the negative interest are the major falling of interest rates in the EU and the overbooking of banks, which has reached (-0.6%). Banks have bought the majority of the bonds, making for 86.7% of the purchases, where the rest have been purchased by guarantee funds. As far as released information goes, pension and insurance funds have not bought any bonds of this emission.

(Picture taken from: ruseonline.info)

Bozhidar Lazarov

Bozhidar Lazarov is a freelance writer, hobbyist programmer and an aspired novelist. Feel free to follow him on https://www.minds.com/seriousways for his latest articles and personal projects.

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