The Romanian government estimated the budget deficit at 11.2 billion lei (EUR2.6 billion) in 2012. Half of the amount should be covered from foreign loans, according to the budget draft. 46.5% of the deficit should be covered from loans attracted on the local market, while the rest of 3.5% is estimated to be supported from debt recovery.
On the other hand, Romania has to repay in May 2012 two euro-denominated loans, totaling almost EUR1.5 billion.
But the ministry will not sell euro-denominated paper on the local market as in previous years, people familiar with the matter told MEDIAFAX, since local lenders cannot count on financing lines from parent banks like before in the current financial context.
Therefore, Romania could try to raise that amount from the international markets as well.
Romania plans to offer up to $2 billion of medium-term bonds in a US debt sale scheduled for the end of November, the second international auction this year. The first issue brought the country EUR1.5 billion at an annual yield of 5.29%, following a five-year bonds auction held in June.