SOFIA, March 24 (Reuters) - Bulgaria will to seek to tap about 1.5 billion euros ($2.07 billion) to refinance maturing debt and fund its budget shortfall after the vote for the European Parliament set for May 25, a source familiar with the process said on Tuesday.
The Socialist-led government gave a green light to the finance minister to prepare the issuance of a new Eurobond last Wednesday. "The bond issue is for now put on hold for after the European vote," the source, who declined to be named, said. "So we are talking June," he said.
Earlier this month Sofia hired Citigroup Inc, HSBC and JPMorgan Chase & Co to lead-manage the pending issue that will be euro-denominated, market sources said.
The finance ministry declined to comment both on timing and the selected lead managers for the time being.
Bulgaria is the European Union's poorest member state, but also one of its least indebted. It is rated at investment BBB grade by Standard and Poor's, level with Lithuania and Russia, Baa2 by Moody's and BBB- by Fitch.
Tapping global markets is a politically sensitive issue in Bulgaria. The timing may be an attempt to avoid opposition attacks on the cabinet ahead of the European vote, seen as a test for the ruling Socialists.
Bulgaria needs to rollover $1.1 billion in dollar-denominated bonds in Jan. 2015 and finance a budget deficit set at 1.8 percent of gross domestic product for this year. ($1 = 0.7256 Euros)
(Reporting By Tsvetelia Tsolova; Editing by Stephen Powell)
((tsvetelia.tsolova@thomsonreuters.com))
Keywords: BULGARIA EUROBONDS/
