Romania to launch EUR 1 bln bonds issue next week to finance budget deficit, public debt

Romania will launch a EUR 1 billion bond issue on November 25, hoping to cover the budget deficit and refinance its public debt with the money raised. The bonds issue will have a maturity of three years and carry a coupon rate of 4.5 percent. If the bonds issuance is over subscribed, Romania will become credible again, Romanian president Traian Basescu has recently said. Romania was planning to attract financing from foreign markets, but the program was delayed for 2011, so raising money from the domestic market is the remaining solution for the country to cover its expenses for the remainder of 2010. editor@romania-insider.com