The Social partners negotiated that Bulgaria will not cover its foreign debt with the reserves of the Silver Fund. Bulgaria will issue Eurobonds instead

Bulgaria will not cover its foreign debt with the reserves of the State Fund for Guaranteeing the Stability of the State Pension System (SFGSSPS) or of the so-called Silver Fund, agreed the social partners at a meeting yesterday. They approved the idea of the Ministry of Finance that ​​this year up to 30% of the funds from the Silver Fund should be invested in Bulgarian government securities (GS) and this share will gradually increase by 10% each year until it reaches 70% in 2016.

"GSs are one of the most secure investment instruments and they will bring greater profitability rather than when the funds are deposited in BNB (Bulgarian National Bank) savings accounts. However, there is no need for the investments in government securities to be used by all means for covering the Bulgarian external debt payment for January," specified the Chairman of CITUB (Confederation of Independent Trade Unions of Bulgaria), Plamen Dimitrov, after the meeting of the National Council for Tripartite Cooperation. "We approve of some liberalisation but under the condition that the profits will be invested in our economy," added he. Therefore, the best option for covering the foreign debt next year is to find external funding.

Earlier yesterday, in an interview with BNT (Bulgarian National Television), Finance Minister Simeon Djankov stated that the bulk of the debt maturing in January 2013 will be covered by issuing Eurobonds, probably in the summer. According to him, the reason for him to refrain from trading on the Eurobond market is that Bulgaria has a relatively bad experience there. He referred to the transaction of NMSP (National Movement for Stability and Prosperity) as a result of which we lost over BGN 1 bn and the Greek debt crisis which gripped the entire EU and increased interest rates. "'If Bulgaria had placed a 5-7 year Eurobond issue on the stock market before approving the Greek transaction, we would have achieved an interest rate of 7.5%, while if we participate on the Exchange now, the interest rate will be 5.5%. Thus, the most appropriate period for Eurobond issuance is from now until July," added Djankov.

The release of Eurobonds also corresponds to the proposal delivered by the Confederation of Labour "Podkrepa". Yesterday, its leader Konstantin Trenchev presented the idea that, within several months, some external funding should be provided for covering the debt next January.

In the Tripartite Council, trade unions, employers and the GERB (Citizens for European Development of Bulgaria) Cabinet supported CITUB's idea for the reserves from the Silver Fund to be used for the payment of pensions not as of 2018 as expected but in 2028 or 2029 at the earliest. Plamen Dimitrov motivated his proposal with the increase in the retirement age as a result of which the "demographic shock" will shift from 2018 to 2028-2029.

Прочети цялата новина

Свързани новини: