“CDS spreads have narrowed considerably lately to 279 basis points and this may spur the ministry into securing additional funding from the international markets to increase the liquidity buffer, as requested by the International Monetary Fund,” BCR said.
The bank expects the ministry will issue a EUR1 billion Eurobond by early November.
So far in 2012, Romania raised $2.25 billion on the US market and another EUR750 million via a tap of its 6.5% June 2018-dated eurobond.
On the local market, the ministry sold RON44.64 billion in leu-denominated state notes and announced plans to reopen a 2015 foreign currency bond on October 22 in a bid to raise EUR150 million.