Romania’s Executive prepared the ground for another Eurobond issue by the end of this year, after the political turmoil ends, Economica.net reports quoting a government decision (HG) draft.

The document is revising upward the cap of the Medium Term Notes (MTN) program, namely the maximum volume of outstanding Romanian MTN Eurobonds at a certain moment, from EUR 46 bln to EUR 56 bln.

The document also includes a tentative Eurobond calendar that stipulates a third EUR 3.5 bln issue by the end of the year (after the former ones in May and July), followed by other issues in the total amount of EUR 10 bln in 2022.

By the end of the next year, a EUR 2 bln Eurobond matures, which brings the volume of new issues that the Government can launch over the next five quarters (unless the MTN cap is hiked again) to EUR 12 bln.

The planned Eurobonds will also consolidate Romania’s reserves, depending on the inflows from the European Union that might be significant.

The Eurobond issue scheduled for this year is aimed to finance next year’s budget deficit. The issues planned for 2022 will finance the deficit of 2023 if the Government is disbursed enough money under SURE (EU’s program aimed at mitigating the effects of the crisis on the labour market) and Resilience Plan (PNRR), the document reads. 

andrei@romania-insider.com

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