Romania borrows again from international markets
Romania has started a new Eurobonds show, the second this year, in the idea of financing its budget deficit in the context of political turbulence before the presidential elections, Bloomberg reports, according to AGERPRES.
Romania offered Eurobonds on Wednesday with maturity in 2032 and 2039 at a yield of 370 basic points over the Midswap rate for securities with seven years and 430 basic points over the Midswap rate for 14 -year -old maturity, a source near this file said.
This Eurobonds show comes before the presidential elections rescheduled for May 4, which triggered the worst political crisis after the fall of communism and complicated the Government’s plans to reduce the budget deficit to 7% of GDP.
The result of the presidential elections could have consequences on investors’ confidence, the sustainability of the government coalition and its political capacity to implement fiscal consolidation measures, warned Fitch Rats in a report published on Tuesday, after the end of last year worshiped the perspective associated with the Sovereign rating of Romania.
In February, Romania raised 2.8 billion euros and $ 1.25 billion from the issuance of bonds in euros and dollars. Analysts estimate that it is possible for Romania to remain one of the largest debtors in Central and Eastern Europe, given that it is going to borrow 13 billion euros from international markets this year, after it has raised a record amount of 18 billion euros.
