Romania prepares year-end debt deals as rating concerns persist

Romania is planning fresh bond sales and buybacks before the end of the year, aiming to smooth upcoming maturities and bolster investor confidence after months of political turbulence, Reutersreported on September 23.

The Ministry of Finance intends to replace part of the EUR 4.25 billion (USD 4.57 billion) in euro-denominated bonds maturing in 2026 with longer-term securities. It also plans to issue yen-denominated “samurai” bonds to diversify funding sources and strengthen links with Japan’s investor base.

“The figures will depend on the market, on the demand for the new issue and on the demand for redemption,” State Treasury Chief Stefan Nanu told Reuters during a visit to London. He said the programme would result in “net new issuance” and that all options were being considered, from rolling over existing debt to launching tranches with varying maturities.

The government is also planning for 2026. Nanu said the forthcoming derivatives framework could open the way for dollar-denominated bonds and possibly issues in one or two currencies Romania has not used before.

The financing strategy comes as investors continue to monitor Romania’s fiscal position and political climate. Prolonged disputes within the ruling coalition and uncertainty over reforms, including changes to public sector pensions and local administration staffing, have raised concerns over budget consolidation.

Credit rating agencies have maintained Romania’s investment-grade status but have repeatedly warned of risks stemming from persistent deficits. Analysts say the outcome of the latest borrowing strategy and the details of next year’s budget will be key to sustaining market confidence.

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