Romania plans to sell as much as €500 million ($649 million) in Eurobonds in the H2 of this year in its first international debt sale in almost four years, the Finance Ministry said.
„We will sell Eurobonds some time in the second half of this year,” Finance Minister Sebastian Vladescu said today in comments reported on Realitatea TV and confirmed by his media relations office. The sale is meant to fund spending on infrastructure and health care after Romania joined the European Union on January 1, Vladescu said in an interview on January 4. He gave no estimated date for the sale during the interview.
Romania's parliament last month approved spending plans that will push the budget deficit to as much as 2.8% of GDP this year from a deficit of about 1% at the end of 2006. Prime Minister Calin Tariceanu's government wants the money to boost spending on education, health and agriculture after joining the EU. The country last sold €700 million of seven-year international sovereign bonds in June 2003.
Its price was at 104.31 today, compared with 98.51 at issue date, while its yield has dropped to 4.28% from 6.01%, according to Bloomberg data. Current legislation doesn't allow debt sales if the Treasury posts a surplus in Romania. (Bloomberg)