The ministry raised RON1.97 billion, almost fivefold more than the planned level of RON400 million, via the first bond issue maturing in April 2036, at an annual yield of 8.15%.
Seven primary dealers participated in the auction. Total demand stood at RON2.35 billion and the coupon rate was 4.25%.
The ministry also raised RON1.36 billion, above the planned level of RON400 million, by reopening a bond issue maturing in April 2026, at an annual yield of 7.34%.
Total demand stood at RON1.74 billion.
Romania’s finance ministry must raise RON160 billion on the domestic and external markets in 2023 in order to cover the budget deficit and refinance previous debts, considering a budget deficit estimated at 4.4% of the gross domestic product (approximatively RON68 billion) and debts worth almost RON92 billion to be refinanced in 2023. The ministry expects the budget gap to be nearly 30% covered from funds raised on the domestic market and 70% from funds raised on the external market, as per a document released by the ministry.