Romania prepares to launch a Eurobond issue, but the Government will wait for the January budget execution report to demonstrate robust growth in revenues before going to the external markets, Darius Valcov, an advisor to prime minister Viorica Dancila, announced on February 4, local Profit.ro reported.

January budget figures usually become public around February 25. In addition to robust growth in revenues, analysts are expecting to see an evolution in expenditures as some suspect the Government deferred expenses from December in an attempt to window-dress the full-year budget execution that indeed observed the 2.9%-of-GDP deficit target according to preliminary cash data.

The Eurobond announcement comes amid a dispute between the Government and local banks, with the former accusing excessive yields asked in the issues launched on the local market. The Government said that it would better rely on households, to whom it promised returns above those paid to banks, and now it announced a Eurobond to tap the foreign markets. The Treasury has not announced yet the bills and bonds scheduled for issue in February.

In the latest Eurobond issue, Romania raised EUR 1.75 billion, on October 4, 2018, selling bonds with maturities of 10 years and 20 years. The sum was, however, lower than the expected EUR 2.5 billion.

Romania’s Govt. resumes borrowing from households

editor@romania-insider.com

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