Romania to issue at least EUR 1bn in Eurobonds by end-2013

By bne IntelliNews September 6, 2013

Romania plans to issue two Eurobonds with a total value of at least EUR 1bn by end-2013 after it already drained USD 1.5bn earlier in the year in similar issues, budget minister Liviu Voinea told Bloomberg.

Overall, the country plans to borrow from abroad the equivalent of EUR 2.5bn [1.8% of GDP] this year to finance its 2.3%-of-GDP budget deficit*.

There is no pressure and the government will wait for a window of opportunity, Voinea commented.

The new issues will predictably be launched after the IMF’s Board endorses the new stand-by arrangement with the country. The Board will discuss the SBA with Romania for 10 days in September, Voinea said.

The EU would later endorse the BoP support programme for Romania on October 5, he added. The yield on Romania’s 2019 Eurobonds rose to 4.16% earlier this week from a record low of 3.4% in May, Bloomberg reported.

Romania expects a total of EUR 4bn from the IMF and the EU, equally split. Nonetheless, the credit lines attached to the programmes would be treated as precautionary, as it happened in the past two-year programme.

* cash-based

Related Articles

Romania’s Banca Transilvania becomes shareholder in Moldova’s Victoriabank

Romania’s Banca Transilvania (BT) has become a shareholder of Victoriabank, the third largest bank in the Republic of Moldova, with a total participation of over 66% alongside the European Bank for ... more

Romania signs €900mn contract for Piranha armoured vehicles

Romania’s government on January 12 signed a €900mn contract to buy 227 Piranha 8x8 armoured fighting vehicles (AFVs) from US producer General Dynamic, partly assembled at Uzina Mecanica Bucuresti ... more

Damen to lose out as Romanian PM says Mangalia shipyard will be nationalised

The Romanian government is committed to taking over a 51% stake in Mangalia shipyards from Daewoo and revive the yard by producing military ships, Prime Minister Mihai Tudose said on January 10 in an ... more