Romania To Issue Eurobonds After EC Spring Forecast – FinMin

Romania plans to borrow EUR500 million-EUR1 billion via the Eurobond to raise money to refinance a loan worth EUR600 million maturing mid-2008. The issue had been initially scheduled for February and then for the first quarter.

“We’ll launch the Eurobond only after the EC releases its spring forecast because we need to base our decision on the commission’s views,” Vosganian said.

The European Commission is expected this week to issue its EU-27 spring economic forecasts.

The minister said Romania isn’t pressured to issue the bonds, as large proceeds from recent privatizations can cover its foreign debt.

“Romania has enough money from privatizations alone and the debt can be paid from proceeds, without affecting the budget deficit,” he added.

In December last year, the finance ministry selected three international banks, UBS AG, Credit Suisse First Boston and EFG Eurobank Ergasias SA to lead-manage the Eurobonds.

Romania last issued bonds on international markets in 2003, when it raised EUR700 million. Deutsche Bank AG, JPMorgan Chase & Co., Citigroup Inc. and UBS Warburg were the lead managers for the issue.