Fitch: Romanian Gov’t has gross financing needs of EUR 15 bn

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Agency analysts also expect Romania to sign new precautionary agreement with the IMF.

The Romanian Government has gross financing needs of EUR 14.9 bn this year, influenced by payments towards the IMF on the account of the loan received in 2009-2011 during the financial crisis, according to the calculations of Fitch rating agency regarding Poland, Hungary, the Czech Republic and Romania’s gross financing needs in the course of this year, Mediafax notes. This year the Government needs EUR 2.8 bn to finance budget deficit, EUR 6.1 bn to refinance medium and long-term debt and EUR 6 bn to repay short-term debt. By the end of last year, the Executive had refinanced 12 per cent of the total need of EUR 14.9 bn. The gross financing need equals 10.1 per cent of the GDP, Fitch say. Romania has no bonds to redeem from the international market this year, but two issuances of bonds denominated in euro on the local market are maturing in 2013. Regarding Romania’s payments to the IMF, they will total EUR 4.8 bn this year, the Government having to repay just EUR 1 bn of the amount. The rest of EUR 3.8 bn is owned to the IMF by the National Bank of Romania (BNR) and is not included in the gross government financing needs. ‘Fitch do not expect (…) BNR to encounter any difficulties with the service of these loans,’ agency report notes. Rating agency analysts also expect Romania to sign a new precautionary agreement with the IMF. ‘Romania is in good relations with the Fund and it will probably sign a new agreement when the current one expires in March,’ the report also says. Regarding the four analysed countries, the gross financing needs for this year are EUR 86 bn. Poland needs the highest financing – EUR 34.2 bn, followed by Hungary – EUR 20 bn, the Czech Republic- EUR 16.8 bn and Romania – EUR 14.9 bn. Considered as a share of the GDP, the highest refinancing need is identified in Hungary – 18.2 per cent and the lowest in Poland – 8.19 per cent.  Fitch defines gross government financing needs as net loans plus long and medium-term debt refinancing, plus short-term debt at the end of the previous year (funds required to roll over debt that matures in the course of the year).