Romanian Government would ink economic recovery plan, but lacks financing

Romania's Government is preparing an economic recovery plan, but must find the financial resources for this, prime minister Ludovic Orban said at Digi 24 TV channel on April 27, News.ro reported.

He implied that Romania expects the European Union to go ahead with the issuing of joint Eurobonds. This scenario would allow the country to borrow money at a lower cost compared to the cost of sovereign borrowing, particularly after the outlook downgrade operated by the rating agencies.

Until then, the resources that Romania has are rather scarce, and the Government has already used them, PM Orban implied.

He mentioned the EUR 750 million for technical unemployment benefits subsidies and EUR 350 million - both sums, money redirected under the same multiannual budget of the European Union.

As for the national budget, the public deficit in Romania hit 0.9% of GDP in March, when the budget revenues plunged by 25% year-on-year during the first month of the COVID-19 epidemic.

(Photo source: Gov.ro)