SOFIA, March 24 (Reuters) - Bulgaria will to seek to tapabout 1.5 billion euros ($2.07 billion) to refinance maturingdebt and fund its budget shortfall after the vote for theEuropean Parliament set for May 25, a source familiar with theprocess said on Tuesday.
The Socialist-led government gave a green light to thefinance minister to prepare the issuance of a new Eurobond lastWednesday. "The bond issue is for now put on hold for after theEuropean vote," the source, who declined to be named, said. "Sowe are talking June," he said.
Earlier this month Sofia hired Citigroup Inc, HSBC andJPMorgan Chase & Co to lead-manage the pending issue that willbe euro-denominated, market sources said.
The finance ministry declined to comment both on timing andthe selected lead managers for the time being.
Bulgaria is the European Union's poorest member state, butalso one of its least indebted. It is rated at investment BBBgrade 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 inBulgaria. The timing may be an attempt to avoid oppositionattacks on the cabinet ahead of the European vote, seen as atest for the ruling Socialists.
Bulgaria needs to rollover $1.1 billion indollar-denominated bonds in Jan. 2015 and finance a budgetdeficit set at 1.8 percent of gross domestic product for thisyear. ($1 = 0.7256 Euros) (Reporting By Tsvetelia Tsolova; Editing by Stephen Powell)