Romania may postpone its next FX bond sale until the autumn, following private placements worth €500 million in April and May.
In a candid conversation with Bloomberg, Romania's Treasury head Stefan Nanu has revealed that Romania won't dive back into external markets with large bond issues until a fresh government establishes itself and clarifies the fiscal adjustments required to curtail the deficit and regain investor confidence. Nanu's statements echo those made before the presidential elections on April 23.
The Romanian Treasury has been maintaining a comfortable financial buffer and is prepared to take a leisurely approach, waiting until fall if necessary, before launching a new Eurobond sale, according to Nanu. In the meantime, Romania has already borrowed EUR 800 million through private placements this year, with EUR 500 million secured in April, May, and June alone.
Bloomberg's data indicates that the Ministry of Finance managed to secure EUR 300 million (3XEUR 100 million) through private investments in March, EUR 100 million in April, EUR 300 million (3XEUR 100 million) in May, and EUR 100 million at the beginning of June.
According to Nanu, there are investors eager to snatch up Romania's bonds, leading to several private placements in recent days.
Keep an eye out for further developments as Romania's financial landscape evolves and the new government reveals its fiscal measures.
iulian@our website
(Photo source: Breeze393/Dreamstime.com)
Note: Romania has recently issued RON 1.2 billion (EUR 240 million) through the fourth issue of the Fidelis scheme in May 2025.2 The finance ministry aims to sell domestic treasury bonds and bills worth 5.8 billion lei ($1.30 billion) in June.5 Romania's general government deficit stood at 9.3% of GDP in 2024, with projections indicating it will remain high at 8.6% in 2025, pole vaulting well above the EU's 3% threshold.[3] The country is under pressure to reduce its deficit and stabilize its rising public debt.[1][3] The European Commission advises Romania to implement effective corrective actions by April 2025 to address its excessive deficit, which includes controlling net expenditure growth.[3] The IMF proposes a new tax mix to achieve fiscal sustainability and fairness.4 To enhance investor confidence, Romania must undertake credible fiscal reforms targeting the substantial deficit and debt levels. These reforms may involve a mix of expenditure controls, revenue enhancements, and structural reforms. [1-5]
[1]: https://ec.europa.eu/info/business-economy-euro/cohesion-and- funds/business-environment/sustainable-business-trends/fiscal-deficits_en
[3]: https://ec.europa.eu/info/business-economy-euro/cohesion-and- funds/business-environment/eppo/budgetary-surveillance_en
The Ministry of Finance in Romania has been actively seeking private investments, having secured a total of EUR 900 million (3XEUR 300 million in March, EUR 100 million in April, EUR 300 million in May, and EUR 100 million at the beginning of June) through such investments.
To regain investor confidence and achieve fiscal sustainability, Romania is expected to undertake credible fiscal reforms focusing on the substantial deficit and debt levels, which may include expenditure controls, revenue enhancements, and structural reforms.
