Nazare: almost half of the state funding for 2026 is already secured

Romania's interim Finance Minister, Alexandru Nazare, announced on Friday that the Romanian state has already secured nearly half of its planned financing for 2026. According to him, the financing plan has been completed to 49% — precisely at the halfway point of the calendar year — a pace considered to be in line with the strategy set by the ministry.

"Romania is maintaining investor confidence, and financing remains on track at the midpoint of the year. This is a pace aligned with the strategy established by the Ministry of Finance, and as a result, Romania has managed to navigate the first half of the year — amid high volatility — without having to resort to pre-financing, as was the case in previous years," the minister said.

He explained that in previous years, the state would draw larger sums than immediately required during the early months, as a precautionary measure against potential periods of turbulence in international financial markets. This year, budget execution and implementation of the financing plan have allowed for a more balanced pace.

58% of domestic financing target met

Nazare noted that the financing plan has been completed to 58% on the domestic market and 35% on external markets. The difference is explained by the fact that domestic financing is carried out through monthly auctions, whilst external financing depends on favourable timing in international markets and on the schedule of European funds and loans from international financial institutions.

The minister noted that the state is combining several sources of financing: government securities issued on the domestic market, bonds on external markets, European funds, and loans from international financial institutions. "Diversifying these sources is important, as it reduces dependence on a single market and allows the state to select the most favourable financing conditions each time," he said.

58.6 billion RON raised from the domestic market

According to Nazare, the Ministry of Finance has so far raised 58.6 billion RON through government securities issued on the domestic market, in line with the monthly average planned at the start of the year. He stressed that this does not represent an acceleration of borrowing, but rather a return to the planned pace following a period of volatility during which the ministry adjusted auction volumes to avoid higher costs.

In the first two months of the year, investor interest was very strong. In March and April, international tensions and domestic political uncertainty reduced demand for government securities. From May onwards, as markets stabilised, demand returned and auctions once again produced solid results, the minister explained.

"When conditions are favourable, investor interest significantly exceeds the amounts announced, which allows financing to be secured on advantageous terms. In June, investor demand exceeded the amounts on offer by approximately 70%, and in the first auctions of July interest remained high — a signal that investor confidence in Romania's ability to implement its fiscal and financing plan remains stable," Nazare stated.

Budget deficit reduced by 28.3 billion RON

The minister indicated that budget execution in the first five months of the year contributed to this progress: the budget deficit fell to 1.75% of GDP, compared with 3.35% during the same period last year — a reduction of 28.3 billion RON. This result has eased pressure on financing requirements and allowed the state to borrow at a balanced pace, without additional pressure on financing costs.

"These days we are working intensively to prepare for upcoming meetings with the rating agencies, which begin as early as next week, in both in-person and online formats. It is essential that we maintain our credit rating, so that Romania's financing remains on track," the interim Finance Minister concluded.