Ministry of Finance of the Republic of Bulgaria
THE MINISTRY OF FINANCE REJECTED ALL BIDS MADE AT THE AUCTION FOR SALE OF EUR-DENOMINATED GOVERNMENT SECURITIES
The Ministry of Finance did not approve the bids made by primary dealers and their clients at the auction for sale of 5-year GS denominated and payable in EUR, with nominal value of EUR 35 million, held on 5 December 2011.
The action was influenced by the expectations for the EU summit to be held in Brussels on 8 and 9 December 2011. The meeting of the European Council where heads of state or government will discuss the economic convergence in the Euro area, the improvement of the fiscal discipline and the deepening of the economic union is a key time for taking decisive measures to deal with the debt crisis.
Despite the global insecurity, the auction was attended by all primary dealers but the results of the reopening of issue 300/2011 were influenced by financial markets' disrupted confidence in Euro area countries as well as by the insecurity around the future of the single European currency.
Having in mind that the auction parameters have been influenced by factors external for the country rather than by its economic development, the Ministry of Finance decided to reject all bids. This decision is also supported by the fact that the government has sufficient and various resources for funding and at the moment is fulfilling the objectives laid down in its issue policy as regards the domestic market.