BRD: Romania To Borrow EUR1.8B Via MTN Program in 2011

05.11.2011 By Florentina Dragu

Romania's Finance Ministry will likely sell debt worth EUR1.8 billion via its planned medium term notes program in 2011, while the country’s full-year financing needs are estimated at around EUR21 billion, according to lender BRD-Societe Generale (BRD.RO).

The forecast is based on a budget deficit of 4.4% of the gross domestic product in 2011, as per government's agreement with the International Monetary Fund.

In 2010, the finance ministry announced a three-year MTNs program worth up to EUR7 billion, but hasn't borrowed any funds so far. The ministry plans to launch a first international bonds issue in the program before July, followed by another in the second half of 2011.

No indicative amounts were announced yet.

Last week, the ministry sold debt worth EUR939 million in three-year foreign currency bonds on the local market, at an average interest of 4.89% a year.

The latest international debt sale took place in March 2010, when the ministry attracted EUR1 billion in a five-year Eurobond, at an annual yield of 5.17%.