Romania’s Government borrowed RON 8.2 billion (EUR 1.7 bln) from the domestic market in November, by issuing bonds denominated in both local currency (leu) and euro, Profit.ro reported.
The amount was higher than the RON 5 bln target set by the previous Social Democrat Government as well as the highest volume since July when the state tapped the external market by raising EUR 2 billion (RON 9.5 bln).
Although the actual volume of debt issued in November is well above target and large in itself, the Finance Ministry is facing an even tougher mission in December when it must finance a supplementary deficit (in addition to that envisaged under the initial planning by the Social Democrat executive) of around RON 16 bln (more than EUR 3.3 bln).
The total borrowing for the first 11 months of the year reached RON 73.6 bln (EUR 15.5 bln), but the Government’s revised funding requirements for the whole year amount to RON 90 bln (EUR 18.9 bln).
The extra money is needed to finance the 4.3% of GDP budget deficit for this year.
Romania’s budget deficit will increase to 4.3% of GDP this year under the revised budget planning published by new...