Romania has started to borrow money at lower interest rates since November last year, increasing the gap below neighbor Hungary, according to a recent report by Bloomberg. “The yield on Romania’s Eurobonds due 2018 has fallen 63 basis points since February to 5.47 percent, according to data compiled by Bloomberg. That’s 37 basis points below similar- maturity investment-grade bonds from Hungary, according to data compiled by Bloomberg. A year ago, junk-rated Romania’s yield was 115 basis points above Hungary’s,” according to Bloomberg.

Romania, the recipient of two international bailouts since 2009, plans its first Eurobond sale in more than a year this week as it seeks to avoid drawing on a 5 billion-euro ($7.3 billion) credit provided by the International Monetary Fund and the European Union, Bloomberg goes on.

Romania will try to sell between EUR 500 million and EUR 1.5 billion of bonds with a maturity of at least five years by the end of this week, according to Deputy Finance Minister Bogdan Dragoi, quoted by the international newswire.

Read the entire article on Bloomberg, including analyst comments.

editor@romania-insider.com