site.btaBulgaria Approves Change in Conditions for State-Guaranteed Loan for Bulgaria-Serbia Gas Interconnector

The Council of Ministers Friday approved amendments to the terms of a state-guaranteed loan for the construction of the Bulgaria-Serbia Gas Interconnector, said the Government Information Service. The loan agreement, worth nearly EUR 50 million, was signed on January 25, 2023, between Bulgartransgaz EAD and ING Group N.V.

As a result of favorable market conditions, Bulgaria’s forthcoming entry into the Eurozone, and the stable financial position of Bulgartransgaz, the loan interest rate has been reduced from one-month EURIBOR + 1.23% to one-month EURIBOR + 0.50%. This adjustment will lower interest expenses by EUR 455,000 over the loan period.

The Bulgaria-Serbia Gas Interconnector project on Bulgarian territory has been designated a “project of common interest” under Regulation (EU) 347/2013. It is also a priority initiative of the High-Level Group on Central and South Eastern Europe Energy Connectivity (CESEC) and has been identified as a project of interest by the Energy Community.