Romania’s finance minister targets sub-6% yields across debt curve by year-end

Finance minister Alexandru Nazare said the government aims to push yields on Romanian government debt below 6% across all maturities by the end of the year, citing improving investor sentiment and expectations that rating agencies will maintain the country’s investment-grade status.

Speaking in an interview cited by Bloomberg and Economedia.ro, Nazare said restoring investor confidence by bringing down Romania’s large budget deficit should become a “national project,” as the government seeks to regain control over fiscal policy.

According to the minister, the ruling coalition led by prime minister Ilie Bolojan must remain focused on reducing the budget deficit to 6.2% of GDP this year, following better-than-expected progress in deficit reduction in 2025.

“I think 2025 was the moment when all the major parties realised that holding the line is extremely beneficial for Romania,” Nazare said.

He added that the government should “raise the level of ambition” regarding Romania’s sovereign rating, aiming not only to secure the removal of the negative outlook but eventually to achieve an upgrade.

Romania is due to undergo its next sovereign rating review on Friday, when Fitch Ratings will reassess the country’s creditworthiness. Romania is currently rated one notch above non-investment grade, with a negative outlook.

Investors have already responded to recent fiscal consolidation efforts, with yields on 10-year leu-denominated government bonds falling by more than 100 basis points over the past year.

(Photo source: Gov.ro)