How Treasury will finance next year's public debt

The overall public debt service will climb to 55.5 billion RON (around 13 billion euros), 12% above this year's level, according to estimates of the Finance Ministry, amplifying the state's liquidity needs.

On the market, calculations on the financing needs both for the end of this year, and for 2011, differ from one analyst to another, being complicated by uncertainties as to the ability of the Finance Ministry to meet targets set in terms of spending cuts and revenue increases.
According to ING Bank estimates, the Finance Ministry will have to refinance RON-denominated debt amounting to 17 billion RON (around 4 billion euros) next year, and the budget deficit will be 31 billion RON. Under the arrangement with the IMF and the EU, the Finance Ministry needs to cut next year's budget deficit to 4.4% of GDP, i.e. 24.3 billion RON.
In 2011 the Finance Ministry will have to roll over a large volume of short-term debt contracted this year and in 2009. Next year's government public debt service entails around 11.3 billion euros in capital instalments and 2 billion euros in interest rates, i.e. a total of over 13 billion euros.
Over the next three years, the Treasury is planning to borrow from foreign markets as part of a medium-term financing programme (Medium Term Notes) worth seven billion euros.