site.btaGovernment Adopts Bill Allowing Up to EUR 3.8 Billion in New State Debt

At its weekly meeting on Wednesday, the Council of Ministers approved a bill amending and supplementing the so-called budget extension law (formally the Act on the Collection of Revenues and the Commitment of Expenditures in 2026 until the Passage of the 2026 State Budget Act, the 2026 Public Social Insurance Budget Act and the 2026 National Health Insurance Fund Budget Act). The bill allows for the government to assume new state debt of up to EUR 3.8 billion, equivalent to 3% of projected GDP.

The bill also provides for the issuance of external sovereign debt on international capital markets through Bulgaria's medium-term debt issuance programme, as well as the assumption of short-term state debt within the overall EUR 3.8 billion ceiling, provided that such debt is repaid by the end of the current budget year.

According to the government, the changes stem from the necessity to secure resources for the pre-financing of payments related to national activities and investments during the final stage of projects under the National Recovery and Resilience Plan. The amendments are also prompted by the sharp and unexpected deterioration of the geopolitical environment and rising energy prices, which have adversely affected the budget's liquidity position and increased expenditure pressures, the Government Information Service further said.