http://uk.reuters.com/article/2014/06/24/bulgaria-bond-sale-idUKL6N0P54EA20140624?feedType%3DRSS%26feedName%3DrbssFinancialServicesAndRealEstateNews
SOFIA, June 24 (Reuters) - Bulgaria will go ahead as planned
with a 1.5 billion euro bond sale despite a sovereign credit
rating downgrade and an expected state rescue of a local bank as
these will not push yields up to unattractive levels, two
sources familiar with the sale said.
Bulgaria kicked off a European investor road show in Germany
on Monday to raise money needed to repay global bonds that
mature in January and to finance a budget deficit the government
targets at 1.8 percent of gross domestic product this year.
The road show, which also travels to London, Paris and
Vienna this week, has been overshadowed by a run on Corporate
Commercial Bank (Corpbank) by depositors rattled by
media reports of suspect deals at Bulgaria's No.4 lender.
Both the bank and its main shareholder deny any wrongdoing.
Bulgaria's central bank has taken control of Corpbank and a
recently acquired subsidiary and has outlined a plan for a state
rescue of the lender if talks with existing shareholders to prop
up the bank with more capital fail.
The bank run followed on the heels of a sovereign downgrade
by global ratings agency Standard and Poor's earlier in June to
one notch above junk, citing ongoing political turmoil that has
put the brakes on reforms needed to spur economic growth.
(Borrowing to pay outstanding debts .... 10 dustbins with 9 covers)
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