Finance Ministry to borrow RON 3.62bn in April

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The Finance Ministry intends to borrow from the commercial banks RON 3.62 billion in April, including the additional amounts, by 46.5% more than in March, the ministry informs in a release.

In March the Finance Ministry borrowed RON 2.47 billion, but has attracted EON 2.827 billion, of which RON 2.727 billion the orientative target amount, the National Bank figures reveal. Seven sessions are schedule to get the loans.

The Finance Ministry borrowed last Wednesday RON 3 billion by launching on the international markets the ‘Medium Term Notes’ bonds. The issue is managed by Citigroup Global Markets Limited, Erste Group Bank AG, ING Bank N.V, JP Morgan Securities plc and Societe Generale. The amount will be used to cover the budget deficit and the refinancing of the governmental public debt, ziare.com informs.

On Sunday, former Prime Minister Victor Ponta, currently Pro Romania leader, said the Dancila cabinet will pay EUR 2.2 billion as interest. “It is the highest cost in Romania’s history. The loan of EUR 3 billion has the highest cost in history,” Ponta said.

“It is the largest loan Romania has contracted in a single day, EUR 3 billion, and the longest term of 30 years. We will pay an interest of EUR 2.2 billion,”  Ponta added.

“Had it been for investments, I’d have agreed with it, but it is for current expenses, for pensions, wages and other expenditures, nothing remains behind them,” the former Premier said.

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