The day in 3 news: Pensions get pre-election boost; 250 million levs net profit for BG TSO; Bonds reap 200 million levs in new issue

The day in 3 news: Pensions get pre-election boost; 250 million levs net profit for BG TSO; Bonds reap 200 million levs in new issue

© Георги Кожухаров


Pension to go up by 11%

Pensions will rise by 11%, the Supervisory Board of the National Insurance Institute decided today.

The lower-than-anticipated inflation led to an unexpected effect - the promised increase in pensions from July 1 turned out to be by a smaller percentage. However, the political parties made a U-turn and pressed for the higher increase before the elections.

At the end of last week a working document from the social security administration stated that the increase is now proposed to be by 10%, and not 11%, as had been planned in the budget.

WCC-DB requested over the weekend an urgent meeting and publicly claimed that the caretaker cabinet is trying to steal 100 million levs from pensioners. This is the amount, as calculated by WCC-DB, that they would have forfeited if the smaller percentage increase had gone ahead.

TSO's net profit spikes

Bulgarian TSO almost trebled its profits in 2023 compared to 2022. The net profit of the company, which deals with the dispatching of the electricity network and the collection of transmission and access fees, rose to 250.4 million levs compared to 91 million levs the year before.

This stems from various factors, including increased revenues from grid connection (by 31 million levs compared to 2022), and increased access revenues for renewables producers as a result of higher amounts of electricity produced (by 39% compared to January - December 2022).

Bulgaria gains 200 million levs

The government has managed to place another 200 million levs through the issue of six-year government securities, after in April it entered the domestic market for the first time in 18 months and placed three-year bonds.

The achieved yield of 3.35% is relatively low and with a narrow spread compared to the similar German debt (93 basis points), which shows that despite successive political turbulences, the country continues to be an attractive issuer, and the hunger of local institutional investors for government securities continues unabated.

Pension to go up by 11%

Pensions will rise by 11%, the Supervisory Board of the National Insurance Institute decided today.

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