Interest rates on Romania's RON- and euro-denominated loans have dropped significantly, meaning lower interest costs for the state and more resources that can be directed toward investments or other economic needs, Finance Minister Alexandru Nazare said on Monday.
"Romania's interest rates are falling, both in RON and in euros. Another piece of good news: interest rates on RON loans have fallen sharply compared with a month ago, by roughly 10 - 40 basis points across all maturities, especially in the medium range (3 - 5 years). The trend began in the last quarter of 2025 and continues at the start of 2026. We want to maintain this trend throughout 2026 and continue lowering financing costs in RON. If fiscal adjustments continue and inflation drops to around 4% by year-end, there is a chance that RON interest rates will fall below 6% for all maturities (short-term rates are already below this level). This will reduce interest costs for the state and help companies and local authorities that borrow, as sovereign rates serve as a benchmark for the entire market. At the same time, interest rates on euro financing have also decreased: by 20 - 29 basis points on medium maturities (3 - 5 years) and by up to 45 basis points on long maturities (6 - 25 years)," Nazare wrote on Facebook.
He also noted that the perceived risk on Romania's 10-year eurobonds has fallen sharply since July 2025 from around 354 basis points to roughly 241 basis points, a drop of about 112 basis points.
"What this means: Romania can borrow more cheaply, which means less money spent on interest and more money available for investments or other economic priorities. It also shows that investors have greater confidence in Romania. A major goal remains reducing the additional cost Romania pays on loans compared with other countries in the region with the same rating, due to the perceived risk," Nazare emphasized.
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