Bulgaria - Interest Arrears Bond (IAB) - Terms

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Issuer: The Republic of Bulgaria
Guarantor: None
Issue Size: USD 1,610,008,718
Maturity: July 28, 2011
Interest Rate: 6-month LIBOR plus 13/16%
Coupon Frequency: Semi-annual
Coupon Dates: January 28 & July 28
Day Count: Actual/360
Issue Date: July 28, 1994
Amortisation: Repayable in 21 equal semi-annual installments beginning July 28, 2001

Installments 1 to 6: ..........................1% of principal
Installments 7 to 11: ........................3% of principal
Installment 12 to 16: ........................6% of principal
Installments 17 to 21: ......................9.8% of principal

Options: Callable at par with accrued interest on coupon dates.
Currency: US Dollar only
Form: Bearer and registered securities
Denominations: $250,000 and integral multiples thereof
Credit Rating: not rated
Principal Collateral: None
Interest Payment Collateral: None