The Finance Ministry will have a rather difficult summer, because of the two payment peaks in June and July. About RON8 billion government paper reaches maturity in June, most of which EUR1.5 billion eurobonds. In July 2018, the Ministry must pay a new installment of EUR1.3 billion (RON6 billion) of the loan taken out from the European Union in 2009.
On top of the foreign debt comes the repayment of domestic public debt. November will be another payment peak, when the government must pay RON7.8 billon on domestic loans.
The financing needs may change over the year if the Finance Ministry issues treasury certificates maturing in less than one year.
Gross financing needs of the government stand at about RON74 billion in 2018 and the exact amount the Finance Ministry will borrow from domestic and international markets will be decided by the projected budget deficit level of 2.97% of GDP (about RON27 billion) and the volume of debt to be refinanced in 2018, about RON47 billion.
The Finance Ministry seeks to borrow about EUR4.5 billion to EUR5 billion via eurobonds from foreign markets, depending on the trends conditions and opportunities on these markets. It also plans to issue RON48 billion to RON50 billion worth of government paper in 2018 with a maturity structure of 30% to 70% (short term vs medium and long term). (EUR1=RON4.6582)
(English version by Loredana Fratila-Cristescu)