“The Finance Ministry has about RON145 billion to fund this year. It is about the RON77 billion budget deficit and the RON68 billion previous debt. As a percentage of the GDP, it needs about as much as in 2021,” Ciprian Dascalu, chief economist of BCR, said on ZF Live on Monday.
“The Ministry has a strategy to avoid additional pressure on the financing costs. It seeks to raise RON75 billion from Romania and EUR14 billion from abroad. The rise in borrowing costs was in line with the international markets. We’ve seen a significant increase in interest rates in the region.”
The Finance Ministry will issue about RON75 billion government securities on the domestic market with a 10%/90% maturity structure (short term versus long term).
It will raise some EUR14 billion from abroad via Eurobonds (including private placements) of about EUR10 billion equivalent, as well as about EUR3.7 billion from the European Commission via the Recovery and Resilience Facility and about EUR0.4 billion drawn from loans from international financial institutions.
The Finance Ministry scheduled to RON18 billion to RON20 billion government paper issues in the first quarter of 2022.
(English version by Loredana Fratila-Cristescu)