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

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