Head of Romania's treasury sees 7.5% yield of 10-year bonds 'stable,' announces new FX bond

The head of Romania's Treasury, Stefan Nanu, said that the 7.5% yield of the 10-year government bonds would remain stable through 2025, "depending on the central bank's policies and the evolution of global factors," and announced the Romanian state will again tap foreign markets with an FX bond, depending on the opportunities.

He also told Economica.net that the government's financing needs for 2025 are RON 232 billion, in local and foreign currency, money that will come from loans and external financing, European funds, PNRR, and other institutional loans. Of the total financing requirement, RON 85 billion will come from external loans and RON 145 billion from the domestic market.

The total interest that the Romanian state will pay in 2025 is RON 41 billion (EUR 8 billion, 2% of GDP), according to his estimates.

Of the RON 231 billion, RON 97 billion represent loans that are due and need to be refinanced.

Nanu stressed that the government must stick to this year's budget deficit of 7% of GDP agreed with the European Commission in order to be credible to investors.

(Photo source: Iryna Drozd/Dreamstime.com)