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February 26, 2021

Romania wants to sell EUR 1 bln in eurobonds

The Romanian Government wants to sell eurobonds worth EUR 1 bln before the first round of presidential elections, Budget Minister Darius Valcov stated in an interview for Bloomberg.
According to analysts, the authorities’ decision to hasten the plans of tapping into international markets was determined by the fear that investor feeling might deteriorate after the presidential elections next month. “The risks that have appeared on account of the elections have determined them to take into account the speeding-up of procedures,” Erste analyst Dumitru Dulgheru stated.
Currently the yield for Romanian eurobonds with ten-year maturity (April 2014) stands at 2.71 per cent, close to the record low of 2.66 per cent registered six weeks ago.
“From the issuer’s point of view now is a very good moment,” stated Krzysztof Izdebski, manager at Union Investment TFI, a mutual fund with assets of USD 2.8 bln. “The market continues to be in a very optimistic mood,” Izdebski added.
Over half of the economists interviewed by Bloomberg have stated that they expect European Central Bank President Mario Draghi to soon announce a government bonds purchasing program similar to the one run by the US Federal Reserve and the Bank of England, in order to support economic growth and to counter the risk of deflation in the Euro Area.

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