Bulgaria’s Debt Reaches €34.6 Billion As Country Remains Among EU’s Lowest Indebted

Bulgaria ’s government debt for 2025 has reached 34.635 billion euros, corresponding to 29.9% of the country’s gross domestic product, according to preliminary data released by the National Statistical Institute (NSI). The figures place Bulgaria among the EU ’s lowest-debt member states, although with some changes in its relative ranking compared to previous years. The public finance balance shows a general government deficit of 4.113 billion euros, or 3.5% of GDP. Within the structure of public finances, the central government subsector accounts for the largest share of the deficit at 3.854 billion euros, equivalent to 3.3% of GDP. Smaller imbalances were recorded at the other levels of government. The local government subsector reported a deficit of 254 million euros, while the social security funds posted a marginal shortfall of 4 million euros. “ Bulgaria ’s debt for 2025 is 34.635 billion euros or 29.9 percent of gross domestic product,” the NSI data stated, summarising the overall fiscal position. Despite the increase in nominal debt , Bulgaria remains among the EU countries with the lowest debt-to-GDP ratios. It is currently ranked fourth in the European Union on this indicator. However, this marks the first time since the end of 2008 that Bulgaria is not within the top three lowest-indebted EU states. At that time, Bulgaria held sixth place in the EU with a debt-to-GDP ratio of 13.6%, according to historical Eurostat data referenced by BTA. Across the European Union, debt structures continue to be dominated by securities, which account for 83.5% of total government debt in the EU and 84.1% in the euro area. Loans make up 14.2% in the EU and 13.5% in the euro area, while currency and deposits represent 2.4% in both. At the end of the fourth quarter of 2025, the highest debt ratios were recorded in Greece at 146.1% of GDP, followed by Italy at 137.1%, France at 115.6%, Belgium at 107.9%, and Spain at 100.7%. At the other end of the scale, the lowest levels of government debt relative to GDP were registered in Estonia at 24.1%, Luxembourg at 26.5%, Denmark at 27.9%, and Bulgaria at 29.9%. Quarterly comparisons show mixed trends across the EU. Twelve member states recorded increases in their debt ratios, 14 saw declines, and Malta remained unchanged. The largest quarterly increases were observed in Latvia and the Netherlands, both rising by 2.1 percentage points, followed by Sweden, Poland, Finland, and Bulgaria. “Compared to the fourth quarter of 2024, Bulgaria recorded an increase of 6 percentage points,” Eurostat-based data shows, placing the country among those with the most significant annual rises alongside Finland, Poland, Romania, Belgium, France, and Italy. At the same time, several countries recorded notable reductions, including Greece, Cyprus, Ireland, and Portugal, reflecting divergent fiscal trajectories within the bloc. Overall, EU debt levels slightly decreased compared to the previous quarter, falling to 81.7% of GDP from 82%. In the euro area, the ratio declined to 87.8% from 88.4%. On an annual basis, however, both the EU and eurozone registered increases compared to the fourth quarter of 2024, indicating a broader upward trend in public indebtedness despite short-term fluctuations. Bulgaria’s Central Bank Tightens Rules on Housing Credit The Bulgarian National Bank (BNB) has decided to increase the countercyclical capital buffer to 2.25%, in a move aimed at easing pressure on the rapidly growing housing credit market and strengthening the resilience of the banking system.