The Ministry of Finance intends to reduce the volume of eurobond issuances, taking advantage of external financing from the National Recovery and Resilience Plan (PNRR) and the Security Action for Europe (SAFE) programme, which offer long-term favourable loans, State Treasury Director General Stefan Nanu said on Thursday.
"We are waiting for the final deficit figure so that we can make our plan accurately and precisely. Yes, it is true that we have indicated, in some way, the amounts we are considering. Our intention is to reduce the supply of eurobonds. This is one of the reasons why our euro yield curve has not adjusted as much, because we were a very large issuer. Now we have a very favourable context, as we benefit from very cheap external financing with very long maturities, which gives us the possibility to issue less on the eurobond market. And here I am referring to loans from the PNRR and those from SAFE. Our expectations are that under these two programmes, including pre-financing amounts, we will draw significant amounts, somewhere around six billion euros," Stefan Nanu said at the official opening of the trading session marking the listing of Fidelis government securities issued by the Ministry of Finance on the Bucharest Stock Exchange (BVB).
Asked by journalists about issuing green bonds, he mentioned this depends on green expenditures in the budget and on how these are covered by other financing sources.
Regarding samurai bonds, Stefan Nanu mentioned that this is a project postponed from last year to this year. The Ministry of Finance is keeping in contact with the underwriting syndicate, and these securities could be issued in 2026.
According to a draft Government Decision published by the Ministry of Finance, the projected annual financing plan for 2026 is around 265-275 billion lei, intended to cover a budget deficit of between 6 and 6,4 percent of GDP and to refinance maturing public debt and in terms of financing sources, it is estimated that around 160-170 billion lei of public debt will be raised on the domestic market and around 21 billion euros on the external market.
According to the Ministry of Finance, the estimated volume on the external market is to be covered through eurobond issuances totalling 10 billion euros, with the remainder expected to be raised through loans under the PNRR and SAFE programmes, loans from international financial institutions and private placements. At the same time, in 2026, eurobonds worth around 3,25 billion euros will also mature.
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