Friday, November 19, 2010

Romania Seeks to Borrow 1 Billion Euros by Nov. 25, TVR Reports

Romania wants to borrow about 1 billion euros ($1.37 billion) with a three-year maturity from the domestic market by Nov. 25, President Traian Basescu told public television station TVR.

Romania plans to borrow the money at an interest below 5 percent to refinance a euro-denominated bond worth 1.4 billion euros due Nov. 29, Basescu said late yesterday in an interview on TVR.

A rate less than 5 percent will show the eastern European country regained its credibility in front of the market after the government “did the right thing in 2010” by slashing public wages and raising a value-added tax to meet international bailout terms, Basescu said.

To contact the reporter on this story: Irina Savu in Bucharest at isavu@bloomberg.net.

To contact the editor responsible for this story: James M. Gomez in Prague atjagomez@bloomberg.net

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