Romania’s authorities are intensively preparing the next meetings with the rating agencies, which begin this week, both in person and online, finance minister Alexandru Nazare announced. “It is mandatory to maintain the rating, so that Romania's financing remains open," he said in a Facebook post.

In his post, Nazare said that the financing plan for this year is 58% fulfilled already, while in foreign markets, it is 35%, Ziarul Financiar reported. He argued that domestic financing is carried out through auctions organised on a monthly basis, while foreign financing depends on the conditions on the international markets, but also on the calendar for European funds and IFI financing.

Nazare’s statement came after former finance minister Florin Citu commented on a highly pessimistic note about the Finance Ministry’s plans for higher-than-usual amounts to be raised from the domestic market in July: RON 8.5 billion, almost RON 1 billion more compared to June. He argued that the government attempts to collect as many funds as possible before a likely downgrade. 

“The most likely explanation is that the Ministry received negative signals from discussions with rating agencies and is trying to borrow as much as possible before financing becomes more expensive or impossible. Considering that the dismissed government cannot submit the budget law or even make a budget correction, I estimate that the probability of a downgrade in the coming period has exceeded 70%," Citu wrote on a highly pessimistic note not shared by other analysts. But indeed, 2027 budget planning remains of crucial importance for securing public financing availability.  

Romania’s financing during the first half of the year fell behind the 50% benchmark overall – but the budget execution showed a moderate deficit of only 1.75% of GDP (January-May) compared to the 6.2% full-year target. Public financing is thus arguably behind schedule. The country's gross funding needs for 2026 are estimated at RON 279 billion, according to Erste Bank estimates based on a projected budget deficit of 6.2% of GDP – which implies net issuance of RON 128 billion. 

Based on the financial group’s estimates and official statements, the gross Eurobond issuance plan is expected at EUR 10 billion equivalent for the full year, with just over EUR 3 billion in redemptions. In late February, Romania successfully tapped international markets, borrowing EUR 3 billion and USD 2 billion. As of early July, roughly 46% of the year’s gross funding needs for 2026 had already been secured.

iulian@romania-insider.com

(Photo source: Gov.ro)