The Treasury raised the equivalent of EUR 1.9 billion on international markets through six such transactions, while domestic private placements brought in RON 9.4 billion through eight transactions, according to Cursdeguvernare.ro.
At this scale, the private placements have served as an emergency financing tool for the Treasury amid international market turbulence linked to the US-Iran conflict and the war, as well as Romania’s prolonged political crisis following the breakup of the pro-European governing coalition. The crisis escalated after the Social Democratic Party (PSD) joined AUR in tabling and voting for a motion of no confidence that brought down the Ilie Bolojan government.
The Finance Ministry’s latest private placements took place at the end of July.
This year, the Ministry of Finance has borrowed more heavily from the domestic market. The prolonged political crisis has narrowed the window for Romania to return to international markets with Eurobond issues under favourable conditions.
The Treasury is waiting for a new government to be formed before deciding on another international bond issue, Ștefan Nanu, head of the Treasury at the Finance Ministry, said last month at a JPMorgan conference in London, according to sources cited by Bloomberg.
Romania has so far raised EUR 4.7 billion on international markets through euro- and dollar-denominated bond issues. Nanu also told the London conference that the Finance Ministry would probably reduce its planned foreign-market borrowing for this year from the initial EUR 10 billion and would not launch another Eurobond issue until the domestic political situation was clarified, Bloomberg reported.