Foreign investments in Romanian government securities amounted to EUR 4.5 billion in June, namely 17.5% of the total bonds outstanding. They slightly increased compared to the previous month, but the level is still lower compared to the beginning of the year, according to the Finance Ministry’s data.

“This shows caution among foreign investors about Romania’s debt, considering the events in Greece, as well as the internal fiscal and political uncertainties,” reads a report issued by ING Bank’s analysts, cited by local Ziarul Financiar.

The foreign placements in RON-denominated government bonds reached EUR 4 billion (17.3% of the total), whereas the foreign investments in euro-denominated government securities amounted to over EUR 143 million (18.7% of the total).

Local banks remained the main holder of government securities, with a share of over 50%, whereas local investors (mutual funds, pension funds and others) had a share of over 30% of the total at the end of June.

At the end of last year, foreign investors had government securities in lei and euro worth over EUR 5 billion, namely 20.3% of the total, slightly down compared to 2013, but tripled compared to 2009.

editor@romania-insider.com