Deutsche Bank Bulgaria Economic Outlook and Challenges

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Bulgaria is a country with a growing economy, and Deutsche Bank has a significant presence there. The country's GDP growth is expected to be around 3.5% in 2023, driven by a strong services sector and a growing tourism industry.

The economy is also benefiting from foreign investment, with many international companies setting up operations in the country. This has created new job opportunities and helped to boost economic growth.

However, Bulgaria still faces some challenges, including a high level of corruption and a relatively slow pace of digitalization. These issues can make it difficult for businesses to operate and for the economy to grow at its full potential.

For your interest: Bulgaria and the Euro

Deutsche Bank Bulgaria News

Bulgaria has secured a loan of 360 million euros from Deutsche Bank to finance its budget deficit.

The loan is a "Schuldschein" loan, which is not widely known in Bulgaria, but has been used by private corporations, municipalities, and states to raise capital.

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Credit: pexels.com, Close view of the United States National Bank building with classic columns and architecture.

Deutsche Bank and Raiffeisen Bank International are the insurers of the loan.

The loan agreement provides for three installments with fixed interest rates and terms of 7, 10, and 15 years.

Bulgaria's Minister of Finance, Petar Çobanov, has signed loan promise contracts with Deutsche Bank, which acts as creditor and payment agent.

The loan agreement still needs to be ratified by the Bulgarian Parliament.

Economists have said that the proposed loan is cheaper and faster to secure.

The government believes that getting additional financing from abroad and placing the debt under German law will lead to the diversification of sources of debt financing and the creation of investors of Bulgarian public debt.

This will prevent the concentration of future debt payments.

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