Romania’s Government will borrow RON 50 billion (EUR 11 billion) from the domestic market and EUR 3 billion from foreign markets this year, Stefan Nanu, head of the State Treasury, told local Profit.ro. Nanu took part in the Euromoney forum in Vienna.

The Eurobond offers will most probably take place in the first part of the year to still benefit from low yields before a possible tightening of the European Central Bank’s monetary policy, he added.

The new Government also plans to sell more bonds to the population. Last year, the state sold RON 730 million (EUR 162 million) worth of bonds to individuals via the Bucharest Stock Exchange.

The head of the State Treasury does not expect a significant increase in yields for lending in lei, if the central bank has a prudent policy, but doesn’t expect lower yields either. Meanwhile, the costs for external funding will go up compared to 2016 when the interest rates on euro were at minimum levels, Nanu said.

editor@romania-insider.com