Eurobonds for domestic market

The Finance Ministry is trying to launch a foreign-currency denominated bond issue on the domestic market this year. The ministry will most likely choose the euro as the currency of the bonds, which will mature in three years, as explained by Finance minister Mihai Tanasescu. “It is usually cheaper to borrow foreign currency from the international market, because maturities on the domestic market are very low, up to two years. We can now try to push maturities up to three years,” Tanasescu says. He did not provide any further details as to the exact amount or the interest rate of the issue. Romania would therefore follow Bulgaria’s example, which is preparing to release an euro-denominated bond issue on the domestic market. The issue is to mature in seven years and hopes to attract foreign investors. ZF