Update: On Monday, Romania borrowed 3 billion euros from foreign markets, through two issues, for 5 and 10 years, according to Bloomberg data consulted by Economedia.
Original news: The government went out on Monday to borrow from foreign markets, through two issues in euros, to finance the deficit and refinance the public debt, according to Bloomberg information consulted by Economedia. One loan is for 5 years and the other for 10 years.
The market submitted offers of over 7.75 billion euros.
Interest rates are made up of midswap plus 255 basis points, respectively midswap plus 360 basis points.
The arrangers for the offer are Citi, Erste, HSBC, JPM (B&D) and SocGen.
For the whole year, loans of 160 billion lei (32.3 billion euros) are needed – 68.4 billion lei to cover the deficit, and the rest to pay old debts that have reached maturity. This year Finances borrowed 120 billion lei and would have to attract another 40 billion lei in the last four months of the year, he wrote recently profit.ro.
Given that the deficit will, however, be higher than the forecasted 4.4% of GDP, the borrowing requirement will most likely be higher.
The most recent estimate of the budget deficit is approximately 6.84% of GDP, which in absolute value represents 109.44 billion lei, according to the ordinance on fiscal measures. Therefore, there is an additional need for a loan of about 40 billion lei, if the Government will not take measures to reduce the deficit.
Also, in the loan plan for this year, 2 billion euros from the loan component of the PNRR are included. 1 billion euros, provided for in the payment request number two, will most likely reach Finance this year, but the second billion may not, in which case the amount will have to be borrowed, profit.ro also wrote.
2023-09-11 14:18:33
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