RO Treasury seeks to raise over RON 5 bln from domestic debt market in January

The Romanian Treasury scheduled roughly the same amount of debt to be issued on the local market in January 2022 (some EUR 1 bln), at par compared to the same month last year.

But the financing from the European Union is already flowing - and will likely ease the urgency of public financing.

This pattern was already visible toward the end of 2021 when the Treasury raised fewer funds than needed, with the effect of a thinner buffer (later to be replenished with the EU funds).

For comparison, the Treasury raised 44% more funds than scheduled in January 2021 (RON 7.35 bln) - when the country’s public budget was under tough pressure from massive health / social spending and scarce revenues.

The same is not likely to happen in January 2022, when the second tranche under the Resilience facility is expected.

Romania’s Ministry of Finance planned, for January 2022, to raise from commercial banks RON 4.4 bln (EUR 0.88 bln) in competitive auctions, Agerpresreported. RON 615 mln more may be raised with additional sessions of non-competitive offers, attached to bond auctions.

The total amount of RON 5.0 bln is RON 1.6 bln more compared to the RON 3.42 bln scheduled for December 2021, but not far from the RON 5.1 bln issued organized in January 2021 (RON 4.5 bln competitive bids and RON 615 bn in non-competitive bids).

(Photo: Vinnstock/ Dreamstime)