Romania should borrow money from the foreign markets as soon as possible, considering the financial and political risks.

The country should also take into account that the conditions in the financial markets are changing as a result of the US Federal Reserve (Fed) tightening the monetary policy, according to analysts of the Erste Group, reports local Mediafax.

Romania plans to attract EUR 3 billion this year through the sale of bonds in foreign currency, but it hasn’t yet announced details about the volume, currency, or maturity of the planned bond issues.

The Finance Ministry needs to cover in June a EUR 1.5 billion payment of as some euro bonds reach maturity that month. The Ministry also wants to strengthen its foreign exchange reserves.

The central bank’s recent reduction of the minimum reserve requirements for the local banks’ liabilities in foreign currency could open the way for the state to issue euro-denominated bonds on the domestic market in the first quarter, reads the Erste Bank report.

The Finance Ministry also plans to borrow EUR 1.5 billion from international institutions this year.

editor@romania-insider.com