The Ministry of Finance borrowed in October nearly 3.68 billion lei from the banks operating in Romania, less than the amount initially planned.
The institution planned, according to Agerpres, to borrow 3.905 billion lei in October 2016 from the internal market, of which 3.5 billion lei by seven auctions for treasury bills and government bonds and 405 million lei by additional non-competitive offer sessions relating to bond auctions.
For the full year, the total funding that the Ministry of Finance scheduled to obtain by issuing domestic government securities depends on the forecasted budget deficit of 2.8% of GDP (about 21 billion lei), to be funded 50% on the domestic and 50% on foreign markets, as well as on the refinancing of bonds denominated in lei and euro maturing in 2016, worth about 38 billion lei, of which nearly 31 billion lei for lei-denominated issues and seven billion lei for euro-denominated issues.
The Ministry of Finance is also considering fund raising on foreign markets worth EUR 4.5 billion, depending on the developments and opportunities offered by these markets, taking into account the related reimbursement of the Eurobond issue launched on the foreign markets and due in June 2016, amounting to EUR 1.5 billion, and the need to strengthen the foreign-exchange reserves managed by the State Treasury.
Funding from external sources will be achieved through the MTN program by issuing Eurobonds worth about EUR 3 billion and loan drawdowns from the international financial institutions, worth about EUR 1.5 billion.
MFP also considers an issuance of government securities on the domestic market worth 48-50 billion lei, out of which 14-15 billion lei in treasury bills and 34-35 billion lei in benchmark bonds.
