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October 23, 2021

Gov’t needs to borrow EUR 14 bln from banks in 2011

This year, the state will have to borrow almost EUR 14 bln (RON 58 bln) from banks to cover earlier debts, as well as to be able to pay pensions and wages, that is to say, a daily average of over EUR 38 M, ‘Gandul’ daily reports. The estimates were made by the Ministry of Public Finance, which posted on its official website the calendar of state bonds emissions for 2011. The total of EUR 14 bln is made up of the loans needed to cover the budget deficit (the difference between expenditure and revenue), of 4.4 per cent of GDP, namely, approximately EUR 5.5 bln, plus the total amount needed to cover the yields of state bonds maturing this year, that is, about EUR 8.4 bln.

The budget deficit “is to be funded in an approx. 50 pc ratio from the internal market,” is stated in the document from the Exchequer. This means the state will have to take a total loan of RON 45 bln, that is, a little under EUR 11 bln, from local bankers. The amount is higher than last year, when the state took from banks, by selling state bonds, RON 41 bln, dropping by 36 per cent from the 2009 level, of RON 64.7 bln.

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