The Eurozone has increased (on the books) Bulgaria's gross external debt

Bulgaria’s gross external debt approached 70 billion euros at the end of June 2026, equivalent to 55.9% of the country’s gross domestic product (GDP). This is shown by preliminary data from the Bulgarian National Bank (BNB) published on Monday. According to the data, compared to the end of June 2025, when the figure stood at 54.3 billion euros (46.8% of GDP), the increase amounts to 28.2%.

Most telling is the change in the external liabilities of the central bank, which jumped to 10.8 billion euros (8.7% of GDP) from just 1.917 billion euros a year earlier – an increase of nearly 8.9 billion euros. The Bulgarian National Bank (BNB) explains that this dramatic increase is purely an accounting adjustment related to the country’s accession to the eurozone: these liabilities reflect the allocation of euro banknotes within the Eurosystem.

In other words, this is a position that arises by definition upon the adoption of the euro, rather than an actual loan.

The external debt of the “General Government” sector rose by 10.7% to 17.108 billion euros (13.7% of GDP). It continues to account for the largest share of the country’s total external debt (24.6 percent).

Data from the Bulgarian National Bank (BNB) also show an increase in short-term liabilities, which reached 20.9 billion euros (30.1% of gross debt) and rose by 91.8% year-over-year. Long-term liabilities increased at a significantly more moderate pace – by 12.2% to 48.6 billion euros, or nearly 70% of total external debt.

External liabilities of other monetary and financial institutions (including banks and money market funds) rose by 36% to 12.8 billion euros (10.4% of GDP). In the “Other Sectors” category, growth was only 3.8%, while debt reached 14.5 billion euros. In intra-company lending, there was an increase of 6.1% to 14.2 billion euros.

Translated with DeepL.