Romania needs to borrow RON 230 bln in 2025, finance minister says
Romanian finance minister Tanczos Barna marked the listing of the largest offering of Fidelis state bonds on the Bucharest Stock Exchange by ringing the BVB bell on Thursday, February 20. He also laid out the government’s borrowing plan for 2025.
Barna said that Romania borrowed RON 250 billion last year, with around RON 16 billion coming from Romanian investors. This year, the government needs RON 230 billion, and is seeking up to 20% of the sum from local investors, of which RON 4.3 billion was already raised in the February 7-14 issuance of Fidelis bonds.
"Over the last five years, it has been a constant growth rate, but I expect spectacular developments in 2025. Both in January and February, both Tezaur and Fidelis [state bonds] demonstrate this. Domestic investors trust government bonds and consider these bonds, these interest rates, to be attractive, safe, and an option for anyone looking to invest in Romania," Tanczos Barna said at the press conference after the event.
The minister noted that the Fidelis state bonds are a first step that many investors take on the Bucharest Stock Exchange. “For the Ministry of Finance, the number one priority is financing the deficit at the lowest possible costs. These costs exist anyway, and if they exist, why not pay interest to Romanian investors? This way, we can retain these amounts as sources for growth and further investments. At the same time, we can generate this flow towards the capital markets,” Barna said.
Additionally, he spoke about the companies listed on the stock exchange and mentioned that Romania is the country that will have the greatest opportunity when the reconstruction process begins in Ukraine.
Also present at the event, BVB officials echoed the finance minister, highlighting consistent demand for maturities of 3, 5, or 7 years. “We see a particular interest in the 1-year lei and the 7-year euro maturities, which represented over half of the total value attracted. This demonstrates the maturation of the Romanian capital market and the increased appetite of individual investors for safe and attractive investments,” added Adrian Tanase, Bucharest Stock Exchange CEO.
The government faced decreased confidence and higher yields until it drafted an ambitious 2025 budget plan which included a lower deficit without additional tax hikes. Since then, rates have dropped by about 0.5%, and investor confidence is returning, according to Barna. The government envisions a 7% deficit in 2025 and 6.4% in 2026.
(Photo source: press release)
