Bulgarian fin min finalises 1.5 bln euro bridge loan

The six-month loan, which has an option for extension of another six months, has an annual interest rate of 1.079%, based on a six-month EURIBOR plus 90 base points, the finance ministry said at the end of last week.

The loan will be repaid in 2015 by proceeds from a bond issue on the international capital markets.

HSBC Bank, Societe Generale, the London branch of Citibank, and UniCredit Bulbank acted as book-runners for the loan, while the London branch of UniCredit Bank was agent for the loan.

The proceeds from the loan will be used to finance the state budget deficit, to extend a loan to the Bank Deposit Insurance Fund and to provide liquidity support, the ministry added.

($=0.8149 euro)