Romania's Finance Ministry has planned to borrow RON 80.4 billion (EUR 16.5 bln) from the domestic market and EUR 9.3 billion from foreign markets this year, according to a presentation for foreign investors, consulted by Profit.ro.

The planning suggests that Romania will issue new Eurobonds only if the money earmarked by the European Union under the SURE program aimed at supporting the labor market, doesn't come in time to finance this year's budget, the publication argues.

The timing of Romania's next Eurobond issue also depends on the market conditions (hence on the economic stimulus packages in the US and EU) and the actions taken by the major rating agencies.

Moody's on October 23, followed by Fitch one week after on October 30, and S&P later on December 6, are supposed to issue update reports on Romania. All of them will have to decide whether to keep the country's debt in the investment-grade category.

The Government seems not to rely on more Eurobond money this year. Thus, the RON 80.4 bln plus the EUR 9.3 bln sums up to some RON 126 bln, RON 13 bln less than the total financing requirements estimated by the Government.

The EUR 3 bln Eurobond issued in January, plus the EUR 3.3 bln issue in May and the USD 3.3 bln issue in July sum up to about the EUR 9.3 bln target for the whole year.

(Photo: Brad Wynnyk/ Dreamstime)

iulian@romania-insider.com