Romania's FinMin announces "positive" budget revision and lower financing cost
The Executive will operate a "positive" budget revision, Romania's minister of finance Adrian Câciu announced after the Government meeting on June 29.
But he avoided providing details as regards the ministries or institutions to be extended more money.
After the budget execution for the first half of the year is available within several days, the ministry of finance will decide the details of the budget revision, minister Câciu assured.
The Government set a budget deficit target of 5.8% of GDP for 2022 (in cash terms), down from 6.7% of GDP last year. But after the first five months of the year, the budget deficit contracted by 20% compared to the same period last year, to 1.6% of GDP.
In separate comments, minister Câciu announced that the borrowing cost paid by Romania decreased from 9.3% to 8.6% and "returned to normal."
"At this moment, we are at 8.6%, Hungary is somewhere at 8.4%. It is important to see that the interest rates in countries on the brink of the conflict [in Ukraine] are very high. They have increased a lot. In Hungary and Poland, [they] operated robust interest rate hikes, the central banks had to intervene. We have a zone of stability created by the National Bank of Romania (BNR); we try not to come up with so-called pro-cyclical measures through monetary mechanisms and budgetary policies," he said, quoted by News.ro.