Romanian Finance Ministry to start borrowing from banks again amid talk that asset tax may be rolled back

Anca Alexe 06/02/2019 | 07:53

Romania’s Finance Ministry (MFP) wants to borrow over RON 2.1 billion on the internal market in February even though last week minister Eugen Teodorovici had said that the state would no longer borrow from banks due to the fact that, after the new “greed tax” was introduced on their assets, banks’ offers to the state were for small values and involved high costs. ​However, authorities seem to have changed their minds. 

An order published on the MFP website shows that the first issuance should take place on Thursday, February 7, and that the state wants to attract RON 300 million from banks in the short term, at a 4 percent interest rate. Below is a calendar of the upcoming borrowing schedule:

It remains to be seen whether banks will help out the state, especially since it has been suggested that the government has been trying to roll back the asset tax by asking banks to redefine the way the ROBOR market rate, which the tax is based on, is calculated.

After rejecting banks’ offers on January 28, Minister Teodorovici suggested that instead of borrowing on the internal market, the MFP could finance itself using the funds in the Treasury, which could last for “at least six months”.



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