Romania will borrow from financial markets, not use IMF and EU money, believe analysts

Analysts say Romania will most likely not access the money available to it as part of the new arrangements with the IMF and the European Commission (EC), but will borrow from private financial markets, although its financing needs remain high, an estimated 19 billion euros for this year.

The state has to finance a deficit of 4.4% of the GDP, amounting to around 24 billion RON (about 6 billion euros) and will refinance maturing T-bills worth 34.4 billion RON. The 1.2 billion-euro loan taken out in the summer of 2009 from local banks will mature this summer, as will the 1.2 billion-euro loan taken out at the end of July 2010.

Romania's public debt exceeded 180 billion RON (42 billion euros) last autumn, accounting for 35.6% of GDP.