Romania contracted (Thursday, 14 February) $ 1.5 billion from the international capital market for a period of 10 years and a half, through a bond issue at a net interest rate of 4.5% per year. It is a major success for Romania, which has not been achieved for many years.
Romania's application was 5 times oversubscribed, $ 7.5 billion respectively, demonstrating the high interest of international investors to invest in Romania's credibility and recognition of the fact that the economic figures achieved by our country in 2012 represent a success.
Improving perception of Romania in the international financial market makes this loan to be the cheapest contracted from foreign capital market after 1990, which is a positive and accurate appreciation for the efforts made by Romania towards fiscal consolidation, ensuring a sustainable economic growth, and boost in Romania's attractiveness to investors.
Compared to the issue in 2012, in the same amount and the same maturity (duration), the difference in interest from 6.875% to 4.5% means $ 356 million less pay. This success comes as other states have failed a similar performance. States like Hungary and Serbia have failed meanwhile to achieve similar performance.
We recall that Romania contracted in January 2012 a 10-year loan of $ 1.5 billion from the international capital market, at the net interest rate of 6,875% per annum. The same issue was reopened in February 2012 for an amount of $ 750 million at a net interest rate of 6, 45% per annum. It was oversubscribed by 4 times ($ 6 billion in January and $ 3.2 billion in February). Compared to the issue in 2012, the same amount and the same maturity (duration), the difference in interest from 6.875% to 4.5% we can say that for the same amount for 10 years Romania pays an interest with $ 356 million less.
Currently, due to the measures of stabilization and economic and political consolidation taken in recent years, Romania has a solid access on the international market of loans in dollars.