Romania on Wednesday hit international markets with a high amount of euro-denominated government bonds with different yields and maturities of which the longest is 30 years, which proves the investors’ confidence in this country, Finance Minister Eugen Teodorovici said on Wednesday night at Digi24 broadcaster.
“We decided to raise funds just as other normal states do, that is to borrow to cover the needs of this year’s first semester, and then start borrowing from the market, if the costs are convenient to me, as Finance Ministry, for the next year. This is the logic of any Finance Ministry that knows how to responsibly handle a country’s debt. The fact that foreign investors are interested in euro-denominated government bonds suggests long-term trust in a country, in its government. This is the first year when Romania comes out on international markets with such long maturities, of 30 years. (…) Romania succeeded today to come out on foreign markets with a very high amount of euro-denominated government securities with different yields and maturities, the longest of which is 30 years, which means very much, it is a very clear message from the foreign markets regarding the Romanian economy,” said Teodorovici.
He emphasized that this year’s deficit will be 2.76 pct of GDP, standing somewhere at 28 – 29 billion lei, and that this is the deficit that needs to be covered from the market, besides the needs for refinancing maturing debt.
“If the GDP is much higher than last year or compared to 2 years ago, by 33 percent versus 2016, it is normal that the total amount will be much higher,” Teodorovici said.
The Ministry of Public Finance raised on Wednesday 3 bln euro following the launch of a new series of bonds under the Medium Term Notes government securities framework program. According to the Order published in the Official Journal, the issue was brokered by Citigroup Global Markets Limited, Erste Group Bank AG, ING Bank NV, JP Morgan Securities plc and Societe Generale. The raised amount will be used to finance the budget deficit and refinancing and early repayment of the government debt.