It is expected that this extension will provide increased flexibility for the budget deficit next year

Romania's Finance Ministry plans to increase its financing plan for this year to 200 billion lei, up from the initial 160 billion lei, Digi24  reports. Ștefan Nanu, director-general of the Finance Ministry's General Directorate of Treasury and Public Debt, revealed this intention and stressed the need to adapt to a higher budget deficit.

Initially, the Ministry of Finance had announced a financing plan of 160 billion lei, corresponding to a deficit of 4.4% of GDP. However, due to pressure on the deficit, the plan was increased to 180 billion lei in October. Recently, this level was almost reached, prompting a new internal discussion on extending the financing program to 200 billion lei.

Ștefan Nanu stressed that their strategy aims to ensure that needs are met quickly and covered, with an emphasis on flexibility. Despite some less favorable tenders recently, the market has responded positively, allowing the funding program to be supplemented. It is expected that this extension will provide increased flexibility for the budget deficit next year.

He informed that two major government bond issues will take place in the immediate period ahead, including a EUR 2.2 billion issue due in December. These, together with retail programs and other planned borrowing, will contribute to reaching the target of 200 billion lei.

With this strategy, the Ministry of Finance aims to manage public debt calmly and predictably, ensuring the flexibility needed to meet financial challenges and support the economy in the face of current uncertainties.