EU to issue EUR 4.6 bln bonds to support financial package for Romania and Ireland

The European Union will issue bonds worth EUR 4.6 billion to finance the support program for Ireland and the loan for Romania. The bonds issuance will have a seven-year deadline. “We expect a strong demand. It is to be seen if it will be as high as in January,” according to a statement by BNP paribas, one of the banks that will intermediate the issuance. The EU issued a new round of bonds in January, to cover for the financing package for Ireland. Two or three more EU bonds issuances are expected by the end of the year, through the European Financial Stability Mechanism, a EUR 60 billion facility destined to support countries with balance of payment issues. Romania has a financing agreement with the International Monetary Fund (IMF), the European Union and other international financing institutions worth EUR 20 billion. EU contributes with EUR 5 billion to the package, out of which EUR 3.65 billion have already been paid. Romania should get the last installement, some EUR 1.35 billion, by the end of March or beginning of April. editor@romania-insider.com