Romania contemplates restructuring a section of their EUR 4.25 billion foreign exchange bonds that are scheduled to mature next year.
In a bid to maintain financial stability, Romania is making adjustments to its financing strategy in light of the revised public deficit target and maturing debts.
The European Union has set a goal for Romania to reduce its deficit below 3% of GDP by 2030. However, recent developments have necessitated a change in the country's financial plans. The revised public deficit target for Romania has been increased from 7% to 8% of GDP, leading to an additional EUR 3.8 billion in public financing needs.
Stefan Nanu, head of Romania's Treasury, has highlighted the possibility of considering liability management on foreign markets, including a switch of existing eurobond issues. This move is aimed at addressing the increased financing needs and ensuring the country's debt remains manageable.
In a positive development, Romania has covered 74% of its initial financing needs for this year with a high foreign exchange buffer. This buffer provides a cushion against potential economic uncertainties.
To further boost its financing efforts, the Ministry of Finance plans to increase its financing target for the year. The current target stands at RON 231 billion (USD 53.04 billion).
In addition to traditional financing methods, Romania is also exploring alternative avenues. The Ministry of Finance expects retail investors in Romania to purchase RON 45-50 billion (USD 11.48 billion) worth of bonds this year, making them an important part of the financing strategy.
Moreover, Romania is planning to issue samurai bonds this year, subject to market conditions. This move follows the successful issuance of samurai green bonds last year, which raised USD 225 million.
While specific details about bond issuances in 2022 are not available at this time, it is common for countries like Romania to issue new bonds to refinance maturing debts. The exact amounts and issuances in 2022 would depend on the financial strategy and market conditions at that time.
[1] Romania Issues EUR 2.75 Billion in International Bonds, Bloomberg, 18 March 2021,
[2] Romania to Issue EUR 500 Million in International Bonds, Reuters, 19 March 2021,
[3] Emerging Markets Increase Euro Bond Issuances, Financial Times, 17 March 2021,
Romania is considering foreign market liability management, including switching existing eurobond issues, as a means to meet its increased financing needs due to the revised public deficit target, which now stands at 8% of GDP. The Ministry of Finance plans to issue additional bonds in 2022 to refinance maturing debts, alongside traditional financing methods and exploring alternative investment avenues.
