Romania’s Ministry of Finance has scheduled to issue bonds worth RON 5 bln on the local market and possibly another RON 585 mln in additional non-competitive issues, Agerpres reported.

The total amount, of RON 5.585 bln, is RON 1.335 bln larger than in July and will be used to refinance the public debt and finance the state budget deficit.

Romania’s budget deficit was only 1.7%-of-GDP in H1, but the Government targets a full-year gap of 6.8% of GDP - meaning that the largest part of it will be concentrated in the second part of the year.

Particularly, the Executive must pay energy suppliers the promised subsidies covered so far to a large extent by the natural gas and electricity suppliers from their own resources.

Former prime minister Ludovic Orban estimates the H1 budget deficit, including the deferred payments, at 3% of GDP.

According to the prospectus published on the website of the Ministry of Finance, the Treasury scheduled auctions for three bill issues this month, on August 4, summing up to RON 1.1 bln. Also, during the month of August, ten benchmark bonds will be reopened to tap the market.

A total value of RON 3.9 bln is envisaged, with additional, non-competitive sessions with values of 15% of the initial value of the bond issue (RON 585 mln in total).

(Photo: Ungureanu Vadim/ Dreamstime)

andrei@romania-insider.com