Romania plans to issue EUR 3 billion worth of debt on international markets this year and to raise some RON 28 billion (EUR 6.23 billion) more on the domestic market, according to Romania’s finance ministry quoted by Reuters.

International debt issuance plans include potential issues in dollars, but are lower than last year when the Romanian Government  raised EUR 2.75 billion and USD 2 billion in debt, via three issues. The initial target for 2014 was of about EUR 2 billion.

The finance ministry said it could also start pre-financing its 2016 needs through foreign issues, pending market conditions, as it has done for the past two years, according to Reuters.

Romania’s financing costs declined last year, both for foreign issues as well as for RON-denominated treasuries issued on the local market, as the central bank cut its benchmark interest rate to a record low 2.75% last year. The monetary easing is expected to continue this year, which should support the strong demand for leu-denominated debt.

The Government sold RON 40.6 billion (some EUR 9.1 billion) worth of debt last year, plus EUR 930 million in domestic euro tenders, in addition to its international issues.

Romania is rated investment grade at Baa3 by Moody's and BBB- by both Fitch Ratings and Standard & Poor's.

editor@romania-insider.com