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January 26, 2022
BUSINESS

Romania will most likely take loans from American market

Romania will most likely seek external funding on the American market as European banks, the main buyers of sovereign bonds in euros, are faced with pressures arising from the new demands for capital, the state secretary in the Public Finance Ministry (MFP), Bogdan Dragoi, stated in Vienna after several meetings with investors, Mediafax reports. “On the US market, where there is a higher amount of liquidity, the potential buyers are pool funds, pension funds, as well as investors who voiced an interest in Central and Eastern Europe. Thus, we will most likely turn to the American market,” Dragoi argued.

The MFP official acquainted the investors with reforms initiated by Romania in the past years, measures which are currently being implemented, the macroeconomic indicators for 2011, as well as the starting-points for this year.

After the meeting, Dragoi stated that representatives of two banks had come accompanied by groups of investor clients, keen to invest in Romania.

Under the MFP strategy, loans of approximately EUR 2.5bln will be drawn from the external markets.

As regards ongoing protests in Romania, Dragoi told the foreign investors that the protest actions were justified, given the harsh austerity measures adopted by the Government, but added that social expenditure would not be raised, as was the case in Romania during preceding election years. “People had to vent these tensions. However, the worst is past and no supplementary belt-tightening measures are needed. For the first time in Romanian history, we will change the frame of mind concerning election years,” the state secretary told investors attending the panel allotted to Romania in the regional forum organized in Vienna by Euromoney.

The deputy governor of the National Bank of Romania (BNR), Cristian Popa, stated, in turn, outside the seminar programme: “The main thing is that Romania should not be perceived as a country with a stability risk. Opinions should be expressed freely, but without acts of violence which may suggest there is internal instability”.

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