State raises debt ceiling by 3.8 billion euros for RRP payments

Why is it necessary to raise the debt ceiling?

Minister of Finance Galab Donev presented a proposal to the National Assembly for amendments to the so-called extension budget, which provide for an increase in the national debt ceiling by up to 3.8 billion euros. The measure is critically important for ensuring the state's liquidity in 2026.

The main goal is the rhythmic financing of activities under the National Recovery and Resilience Plan (NRRP) and avoiding risks to social payments.

Key facts and challenges:

• NRRP deadlines: The final deadline for completing investments is August 31, 2026, which necessitates intensive payments in the June-August period.
• Volume of needs: During the first eight months of 2026, projects worth approximately 4.4 billion euros must be financed.
• Exhausted limit: The current limit for new debt of 1.41 billion euros is fully exhausted by the issuance of government securities for the January-May period.
• Liquidity risks: As of the end of May, the available resources of the Ministry of Finance (excluding the Silver Fund) amount to about 2 billion euros, which is insufficient given the expected negative budget balance during the summer.

Since the expected payments from the European Commission for the fourth and fifth requests will only arrive later in the year, the state budget must temporarily "pre-finance" these expenses so that the implementation of national investments is not interrupted.