The IMF estimates Romania’s financing requirements will reach 38 billion euros next year, up by around 700,000 euros against 2010, with around half of them being accounted for by short-term debts falling due.
Fund experts warn that a careful management will be needed to
ensure a “smooth” financing of the budget deficit amid a
persistently high interest rate margin reflecting the country
risk.
As for the public debt, the term-based structure is very important,
considering the need to correlate term payment with the available
revenues.
Analyst Aurelian Dochia says short-term debt has to be a concern
for the Finance Ministry.
“The short-term debt is of concern. It generates significant
vulnerability, puts a lot of pressure on the budget. The Finance
Ministry needs to make efforts to restructure and consolidate
longer-term debt. Countries with longer-term debt have an easier
time, are less vulnerable to market moves and to interest rate
rises.”