1 GOVERNMENT SECURITIES ISSUES
In January the Ministry of Finance issued through an auction organized by the BNB two government securities issues under Ordinance No. 5, including one short-term discount treasury bills issue (three-month, No. BG3010008004) and one long-term tap treasury bonds issue (ten-year, No. BG2040008216).
At the auctions primary dealers' bids totaled BGN 108,907.5 thousand: BGN 38,907.5 thousand for three-month government securities and BGN 70,000 thousand for ten-year government securities (chart 1). Approved bids came to BGN 45,000 thousand nominal value, including three-month of BGN 15,000 thousand and ten-year of BGN 30,000 thousand (Charts 1 and 2). Coverage coefficient of the issues approved for sale in January accounted for 2.42: 2.59 for three-month government securities and 2.33 for the ten-year government securities.
Government securities issued in January decreasedby BGN 41.1 million on the same period of 2007 (chart 2).
Bids Received and Government Securities Sold at Auctions (chart)
In the review period the yield attained in the primary market as a whole reflected the demand for government securities with various maturities. The yield on the three-month treasury bills increased by 4 basis points compared with that of the previous issue with the same maturity launched in September 2007, reaching 4.16 per cent. In January the ten-year tap bonds displayed a trend opposite to that of the three-month bills. In January they reported a 10 basis point decrease and their yield came to 5.17 per cent (Charts 3, 4 and 5).
One 2003 treasury bonds issue (No. BG3030003110) matured in January.
In the month under review reverse repaid and repurchased securities earmarked for direct sale to individuals accounted for BGN 163.4 thousand.
sales of Government Securities Issues (chart)
Prices of Issues Sold per BGN 100 Nominal Value (table)
Dynamics of the Average Annual Yield ofPrimary market Government Securities (chart)
Yield of Primary market Government Securities by Type (chart)
Yield and sales of Government Securities (chart)
Government Securities Bought in the Primary market through Competitive and Non-competitive Bids (chart)
Average Term of Outstanding Government Securities Issues by Year (chart)
Liquidity Provision and Absorptionthrough Government Securities Maturities and Issues (chart)
Pending Payments on Government Securities in March 2008 (table)
Calendar of Government Securities Issues in March 2008 (table)
2 DOMESTIC GOVERNMENT DEBT DYNAMICS
By end-January 2007 domestic government debt totaled BGN 3,138,234.4 thousand in nominal terms. The share of government securities issues in total debt was 89.5 per cent (BGN 2,808,106.2 thousand) and that of government securities issued for structural reform 10.5 per cent (BGN 330,128.2 thousand, chart 9).
Government securities issued since early 2008 amounted toBGN 45,000 thousand. Redeemed government securities accounted for BGN 75,168.9 thousand. In January issued government securities and effected payments led to a change in the maturity structure of the five-year government securities: their share decreased to 22.9 per cent at the expense of the other government securities whose shares increased (chart 10). The average-weighted maturity of government securities issues was seven years and five months. Government securities issued for structural reform amounted to BGN 330,128.2 thousand by the end of the review month. A payment under CM Decree No. 244 of 1991 amounting to BGN 275.2 thousand was effected. During the review period repayments on USD-denominated ZUNK bonds totaled USD 9889 thousand and on EUR-denominated ZUNK bonds EUR 8353.1 thousand.
Debt foreign exchange structure experienced slight changes in January (chart 11). The shares of government securities in euro and US dollars decreased to 18.8 per cent and 4.6 per cent respectively, while the share of government securities in levs increased to 76.6 per cent on the previous month. The maturity structure also changed. Short-term government securities reached 0.5 per cent, while mediumterm government securities decreased to 34.2 per cent at the expense of long-term government securities which increased to 65.4 per cent (chart 12). Government securities with fixed interest coupons comprised 89.5 per cent and government securities with floating interest coupons 10.5 per cent.
Since early-2008 interest and discounts paid on government securities issued on the domestic market totaled BGN 41,540.1 thousand. Payments on government securities issues amounted to BGN 33,259.7 thousand or 80.1 per cent of the total repaid interest and discounts (chart 16). Interest paid on ten-year bonds occupied the largest share, 44.8 per cent, followed by interest payments on fiveyear bonds, 38.7 per cent (chart 15).
Domestic Government Debt (table)
Changes in Domestic Government Debt (chart)
Outstanding Government Securities Issues as of 31 January (chart)
Currency Composition of Outstanding Government Securities as of 31 January (chart)
Maturity Structure of Outstanding Government Securities as of 31 January (chart)
Shares of Outstanding Government Securities with Fixed and Floating Yield as of 31 January (chart)
Residual Maturity of Domestic Government Debt as of 31 January (chart)
Expenditure on Domestic Debt between 1 January and 31 January 2008 (table)
Structure of Expenditure on Government Securities Issues as of 31 January (chart)
Structure of Expenditure on Domestic Government Debt (chart)
3 EXTERNAL GOVERNMENT DEBT DYNAMICS
By end-January external government debt totaled EUR 3526.3 million in nominal terms.
In January new external financing came to BGN 12,540 thousand. Payments on the debt totaled BGN 200,731.5 thousand, including principal payments of BGN 5356 thousand and interest payments of BGN 195,375.5 thousand. The bulk of payments was made on government investment loans (BGN 5356 thousand). Interest was paid mainly on bonds (BGN 191,849.9 thousand) and on government investment loans (BGN 3525.5 thousand).
Changes occurred in foreign exchange debt structure as a result of payments. Debt denominated in US dollars decreased on the previous month, reaching 26.2 per cent by the close of January. The shares of debt denominated in euro and in other currencies increased to 69.3 per cent and 4.6 per cent respectively. Debt interest structure also changed. Debt with floating interest rates reached 34 per cent against 66 per cent of debt with fixed interest rates. The average-weighted residual term to maturity of the external debt was nine years.
The structure of external government debt by type of creditor was as follows: debt on other bonds (global bonds and eurobonds) comprising 47.9 per cent, to the World Bank 24.8 per cent and on government investment loans 18.3 per cent. Obligations to the European Union accounted for 3.6 per cent and to the Paris Club 3.9 per cent.
External Government Debt (table)
New External Financing and External Government Debt Payments as of 31 January (table)
Currency Composition of the External Government Debt as of 31 January (chart)
Interest Rate Structure of the External Government Debt as of 31 January (chart)
Residual Maturity of the External Government Debt as of 31 January (chart)
4 GOVERNMENT DEBT STRUCTURE
By end-January government and government guaranteeddebt totaled EUR 5130.8 million nominal value, including domestic debt of EUR 1604.6 million and external debt of EUR 3526.3 million. The decrease in nominal terms came to some EUR 32 million on the previous month due mainly to payments on the domestic government debt effected during the period under review.
By end-January the debt to GDP ratio came to 16.3 per cent: down by 2.14 percentage points on the close of the previous month due to the new GDP values. The values of this indicator for domestic government debt and external government debt accounted for 5.1 per cent and 11.2 per cent respectively (chart 20).
Domestic government debt occupied 31.7 per cent and external government debt 68.3 per cent in the debt structure (chart 21).
The foreign exchange debt structure experienced certain changes due to effected operations. By end-January debt in US dollars reached 19.4 per cent, in euro 53.5 per cent, in levs 24 per cent and in other currencies 3.1 per cent (chart 22).
In the structure of debt by type of creditor bonds (global bonds and eurobonds) occupied the largest share, totaling 32.9 per cent, followed by domestic government debt (government securities) 31.3 per cent, obligations to the World Bank 17 per cent, government investment loans 12.6 per cent (chart 23).
By end-January debt intrest structure also experienced changes: debt with fixed interest rates reached 73.3 per cent and debt with floating interest rates comprised 26.7 per cent (chart 24).
Since early-2008 payments on government debt have totaled BGN 348.8 million, including domestic debt payments of BGN 144.1 million and external debt payments of BGN 204.7 million (chart 25). In January payments on domestic government debt and on government investment loans comprised the largest shares.
Payments in levs (BGN 144.1 million) dominated the foreign exchange composition of debt payments, followed by payments in euro (recalculated in levs: BGN 127.2 million) and in US dollars (BGN 75.2 million) (chart 26).
Government Debt Amount (table)
Dynamics of Domestic and External Government Debt (chart)
Government Debt Structure as of 31 January (chart)
Government Debt Currency Structure as of 31 January (chart)
Government Debt Structure by Creditor as of 31 January (chart)
Government Debt Interest Rate Structure as of 31 January (chart)
Government Debt Payments (chart)
Currency Structure of Government Debt Payments as of 31 January (chart)
Government Securities Issued in Domestic market and Held by Non-residents (table)
5 GOVERNMENT GUARANTEED DEBT STRUCTURE
By end-January government guaranteed debt totaled EUR 572 million nominal value. The increase in nominal terms came to some EUR 25.1 million on the previous month due mainly to external financing received during the period under review.
By end-January the government guaranteed debt to GDP ratio came to 1.8 per cent: down by 0.1 percentage points on the close of the previous month as a result of new GDP values (chart 20).
In January new external financing on government guaranteed debt came to BGN 40,075.1 thousand. Payments on the debt totaled BGN 3921 thousand, including principal payments of BGN 1466.9 thousand and interest payments of BGN 2454.1 thousand.
The foreign exchange structure of government guaranteed debt experienced certain changes due to effected operations. By end-January debt in US dollars reached 19.35 per cent, in euro 53.68 per cent and in other currencies 26.9 per cent (chart 27).
In the structure of government guaranteed debt by industry Energy occupied the largest share (76.6 per cent), followed by Transport (13.7 per cent) and Other industries (9.8 per cent) (chart 29).
Government guaranteed debt interest structure also changed. Debt with fixed interest rates reached 59.4 per cent and that with floating interest rates 40.6 per cent (chart 28).
Government Guaranteed Debt (table)
New External Financing and Government Guaranteed Debt Payments as of 31 January (table)
Government Guaranteed Debt Currency Structure as of 31 January (table)
Government Guaranteed Debt Interest Rate Structure as of 31 January (chart)
Government Guaranteed Debt by industry as of 31 January (chart)
Government and Government Guaranteed Debt (table)
MUNICIPAL DEBT AND SOCIAL SECURITY FUNDS DEBT (table)
Social Security Funds Debt (table)
CONSOLIDATED GOVERNMENT DEBT AMOUNT (table)
APPENDICES (tables)
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