Head of Treasury says Romania lifts borrowing target by another EUR 4 bln

Romania lifted in early October the year’s public financing target from RON 160 billion to RON 180 billion and already managed to reach the target – which will further be lifted to RON 200 bln, head of Treasury Stefan Nanu said speaking at a conference organised by Profit.ro. He implied that the extra borrowing would provide a buffer for the beginning of next year and not be all spent on this year’s gap.

However, pressure from trade unions in public companies and institutions is rising against the austerity measures included in the fiscal package approved this autumn to prevent further fiscal slippage.

The initial RON 160 billion (EUR 32 billion, or 10% of GDP) was set initially with a public deficit target of 4.4% of GDP in mind, he explained, according to Bursa.ro. But, “knowing that the deficit will be wider this year,” the government decided in October to borrow more, he added.

The RON 20 billion (EUR 4 billion) increase decided in October, already completed, accounts for just over 1% of GDP.

Finance minister Marcel Bolos recently said that he was confident the trade gap would not exceed 6% of GDP this year.

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