The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site.

All material subject to strictly enforced copyright laws. © 2021 Euromoney, a part of the Euromoney Institutional Investor PLC.

Bulgaria: Recovering and cheap

Since teetering on the edge of bankruptcy early this year amid expectations of being the world's first Brady bond defaulter, Bulgaria appears to be bouncing back. The turning point was the installation of a staunchly pro-reform government in April since when prices across Bulgarian debt markets have rocketed.

Lev denominated T-bills, as well as the three Bradys - discs, flirbs and IABs - have all risen by over 50% making them star performers in the universe of emerging market debt. The lev, which once free fell to 3,300 to the dollar, has stabilized at 1,690 after having been as high as 1,450. The most crucial economic event in Bulgaria's troubled post-communist history, the establishment of a currency board to peg the lev at a rate of 1,000 to the Deutschmark, will finally take effect in July after months of negotiations.

"There is now some light at the end of tunnel," says Jonathan Hoffman, economist at CSFB. With all this good news on the table, as well as privatizations in the pipeline, is Bulgaria finally on the road to recovery?

"What we are seeing is a honeymoon period for the new government which has driven the debt markets to relatively expensive levels," explains Mark Evans, director of Montpelier Special Funds New Europe, which closely follows events in Bulgaria.

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.


Unlimited access to and

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually


Unlimited access to and, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors


Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree