Romania borrows EUR 3 bln from the foreign markets in one day

35

Romania has borrowed EUR 3 billion from the foreign markets in just one day. It is the largest sum borrowed all at once through Eurobonds with maturity of 7, 15 and 30 years. At the same time, it is the first time when the state resorted to a 30-year loan.

Last year, the Romanian state has got a total of EUR 3.75 billion, plus EUR 1.2 billion from other markets.

The move has been slammed by the Liberals in the Opposition. “Romania needs more money and it is borrowing more and more. The Government has made a strategic mistake,” said Liberal senator Florin Citu, who warned the major problem now is the risk management.

The Liberal senator drew a parallel between the current situation and the one in 2013, when the Government took loans in USD dollars, then the US dollar rose against the RON at record highs, which doubled the cost of the payment.

“No one will be held responsible for this loan, as nobody paid for the mistake in 2013, but Romanian will be the ones to pay higher taxes in the future”, Citu said.

In his turn, PNL deputy Răzvan Prișcă, the loan has lacked all transparency rules.

Yet, Finance minister Eugen Teodorovici said the loan represents “a success” that proves Romania enjoys a long-term confidence.

He further explained that the Romanian Government had decided to borrow money in the first quarter of this year and that it can also borrow next year in case of lower costs.

What we took today from the market helps us have funds for at least 6 months. In a potential uncomfortable world situation gives us stability. The fact there is interest for Eurobonds means there is long-term confidence”, Teodorovici argued.

- Advertisement -

Comments are closed.

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More