By Irina Savu
May 11 (Bloomberg) -- Romania may sell euro-denominated bonds on international markets this year, Deputy Finance Minister Bogdan Dragoi said.
“I can’t rule out another issue toward the end of this year,” Dragoi told reporters today at a financial seminar in Bucharest. “The price will be very important as it’s a reference for investments in Romania.”
The east European country, which received a 20 billion-euro bailout ($25 billion) last year from an International Monetary Fund-led group, plans to narrow its budget deficit to 6.8 percent of gross domestic product this year from 7.2 percent in 2009. The government has pledged to cut wages by 25 percent and pension and unemployment benefits by 15 percent.
Romania sold 1 billion euros of five-year bonds paying a 5 percent coupon in March in the country’s biggest debt offering. The government revived the sale, which was canceled in November, to take advantage of renewed investor confidence after Prime Minister Emil Boc pledged austerity measures in the 2010 budget.
The yield has risen to 5.737 percent from 4.963 percent since the bonds were sold, according to Bloomberg prices.
Romania has to make 10 billion euros of debt payments this year, including 2 billion euros to cover interest, Dragoi said.
To contact the reporter on this story: Irina Savu in Bucharest email@example.com.