Government Debt Directorate

Director of the DirectorateMilena Boikova
Milena Boikova

Contact details:
102 "G. S. Rakovski" Str.
1040 Sofia, Bulgaria
telephone: (+359) 2/9859 2452

e-mail: Embedded Image

Directorate's main task:

Government Debt Directorate exercises control over the amount, dynamics and service of all financial liabilities assumed on behalf and at the expense of the state, which are a liability of the state and which cover domestic and foreign government debt. It plans, organizes and controls the activities related to the implementation of the issue policy on the domestic and foreign market and the measures for their implementation. The Directorate provides for the carrying out of activities connected with financial markets' monitoring, analysis and institutional development

Issues Division:

  • deals with the overall activity related to the development and implementation of the MoF issue policy in relation to the assumption of market oriented financing in the domestic and international capital markets;
  • prepares the necessary documents for holding of auctions for placement, buy-back, swap of Government Securities (GS) issued on the basis of Ordinance No 5 on the terms and procedure for issuance, acquisition and payment of GS;
  • develops and implements the MoF issue policy in line with the Government Debt Management Strategy, the ceilings provided for in the annual state budget law and medium-term budget forecast;
  • keeps active dialogue with domestic and foreign financial institutions in respect of the MoF issue policy;
  • organizes and coordinates the overall process of bond issue in international markets, including preparation of the necessary documentation, prospectus up-date and presentation, as well as involvement in the transactions themselves;
  • negotiates on activities related to the fiscal agency of the Bulgarian National Bank; explores the EU requirements, standards and rules on GS market and adapts the local regulations;
  • monitors and analyses the domestic and international debt markets, develops proposals for streamlining the debt portfolio, including buy-backs, restructuring, swaps, etc.;
  • takes part, on an expert level, in the work of the Sub-Committee on EU Government Bills and Bonds Markets to the Economic and Financial Committee, as well as, where necessary, in other working formats of the EU on government debt topics;
  • is responsible for ensuring the contractual relations with credit rating agencies.

Strategies, Analyses and Statistical Reporting Division:

  • monitors the amount, structure and development of government debt and draws up a Government Debt Management Strategy;
  • analyses the key macroeconomic indicators in the context of their relation with the applied debt strategies and debt policy of the government; develops proposals and scenarios for debt management - buy-backs, swaps, restructuring, etc.; evaluates and analyses the proposals for funding and their influence on the amount and structure of the debt;
  • participates in the process of development of the medium-term budget forecast and the State Budget Law for the relevant year concerning the budget debt funding and government debt service costs;
  • drafts the limitations under Article 37 of the Public Finance Law to be included in the State Budget Law for the relevant year and the policy on debt and financing;
  • provides for the overall process of the Council of Ministers' review and approval of the projects applying under the procedure of the Ordinance on the Conditions which Investment Projects Funded by Government Loans and Projects Applying for Government Guarantee Funding Should Meet (adopted by CMD 337/1.12.2015, promulgated in SG No 94 of 2015, in force as from 1.1.2016);
  • prepares and submits statistical data on the debt of the general government sector and its sub-sectors;
  • participates in the preparation of the Convergence Program of Bulgaria in its part referring to the general government sector and its sub-sectors;
  • takes part in the preparation of various information materials, reports and presentations intended to provide different, in terms of content and scope, information on the government debt to international and local government organizations and financial institutions;
  • prepares regular publications and data bases providing the necessary public information about the state and dynamics of government debt;
  • prepares and releases the official information on consolidated debt and guarantees of the general government sector and its sub-sectors.

Debt Service Division:

  • provides for the overall process of servicing the government and government guaranteed debt of the Republic of Bulgaria together with the Bulgarian National Bank and other fiscal agents;
  • keeps the Official Register of government and government guaranteed debt, incl. a database of daily exchange rates and interest rates;
  • serves and carries out debt settlement operations by means of GS issued as a result of the structural reform /Law on Settlement of Non-Performing Loans Bonds/ under the procedure of individual laws and decrees of the Council of Ministers;
  • prepares a calendar of the forthcoming payments/proceeds to/from the central budget as a result of government debt operations for the purposes of cash management of the liquidity of government finances on a quarterly basis;
  • draws up monthly and annual reports on the state of the government debt and monitors the compliance of the debt indicators of the annual State Budget Law with the information in the debt register;
  • makes assessments of and prepares periodic information about the expected performance of the debt parameters for the current year;
  • participates in the process of drafting the medium-term budget forecast and the State Budget Law for the relevant year setting a reserve for covering the risk of government guarantee activation;
  • draws up the limitations under Article 37 of the Public Finance Law concerning government debt to be included in the State Budget Law for the relevant year.

Control over Transactions with Government Securities Division:

  • assesses on an on-going basis the cumulative impact of all EU requirements, standards and rules on the GS market and ensures the taking of adequate corresponding measures at national level;
  • makes analyses and proposals for improving the GS market with the view of adopting the best market practices of developed financial systems and encouraging the further integration of the GS market in the single European market, incl. towards strengthening foreign investors' integration in the domestic sovereign debt market;
  • develops the methodology and the legislative framework of the GS market and participates in the preparation of draft legislation relevant to the GS market;
  • prepares and makes public quantitative and qualitative criteria for assessment and selection of basic qualified participants in the GS market that actively cooperate for the development of a liquid and effective GS market based on full transparency and high level of awareness of all market participants;
  • participates in the process of GS market participants' integration in the market infrastructure while observing maximum protection of the rights over client assets at all levels of the model for holding and disposal of GS;
  • supports the Minister of Finance in the process of organization, regulation and control of transparent and effective market infrastructure before and after the transaction with the view of encouraging GS market transparency and liquidity;
  • supports the Minister of Finance in performing his/her regulatory powers under the provisions of Article 36(2) of the Government Debt Law in respect of:
    a) selection of GS primary dealers and control over the observance of the obligations for GS primary dealership;
    b) control over the systems for GS transactions registration with BNB and with the sub-depositories of GS, together with the BNB.
  • supports the Minister of Finance in performing his/her regulatory powers concerning the implementation of Regulation (EU) No 236/2012 regarding GS and GS credit default swaps.