Romania intends through the Ministry of Public Finances (MFP) to raise up to EUR 3 billion in international markets this year and will issue up to RON 28 billion of local treasury bonds, a press release informs. International debt issuance plans include potential dollar issues, which are lower than last year when the government tapped markets three times to raise EUR 2.75 billion and USD 2 billion in debt, exceeding an initial target of about EUR 2 billion.
MFP could also start pre-financing its 2016 needs through foreign issues, pending market conditions, as it has done for the past two years.
Romania aims to draw EUR 1.5 billion from a World Bank development loan. Debt managers also plan to sell RON 10-12 billion in treasury bills this year. They aim to tender new benchmark 15-year issues to extend the yield curve and introduce regular three-month bill tenders to improve liquidity management. Benchmark bond issues will be reopened to increase their size to a more liquid EUR 2 billion, a move analysts said could help get a tiny secondary debt market on its feet.
Government debt redemptions will peak in the first quarter, totalling roughly EUR 4 billion.