Romania's gross financing needs only slightly down in 2023 - fiscal consolidation remains key

The gross financing needs of Romania's Government will remain high next year as well, at around RON 141 bln from RON 150 bln this year, therefore fiscal consolidation is essential to reduce financing pressure, according to data presented by BCR chief economist Ciprian Dascălu, Profit.ro reported.

The debt issued by the Romanian Government in the year-to-date period has already crossed the threshold of RON 100 bln with loans for this year, reaching RON 106.6 bln (including the loan under the Resilience Facility).

Recently, the Ministry of Finance borrowed almost RON 494 mln from the domestic market in bonds with a residual maturity of 12 years and a yield of 9.3% - the highest yield since 2010, when Romania was still feeling the effects of the financial and economic crisis.

The state's need for money remains high next year despite the plans (under the excessive deficit procedure) to reduce the budget deficit.

For the following year, according to BCR estimates, out of the gross financing requirement (RON 141 bln), RON 68 bln would represent the budget deficit.

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