Gov’t intends to borrow EUR 8bn to cover the budget deficit, sources say

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The Government plans to borrow EUR 8 billion in the next two years, in order to cover the increasing budget deficit, after the waves of wage increases for state employees this year. Another reason is the Government’s intent to refinance some foreign debts that become due. Currently, the difference between revenues and expenditures is in the limit of the 3 percent set by the European Union, profit.ro informs, quoted by ziare.com.

In order to make the step possible, the Government will increase the indebtedness limit from foreign markets from EUR 20 billion to EUR 27 billion, the same source informs.

The Government has announced the foreign banks of its intention to borrow money and has submitted proposals for a Eurobond syndicated issue, sources quoted by Reuters say.

In 2017, Romania has attracted EUR 2.75 billion from international markets, the latest accession being made in October, when the Finance Ministry sold Eurobonds worth EUR 1 billion, by reopening the bond issue for 10 years launched in April.

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