The Government approved, at its Friday meeting, a EUR 9 billion increase in the value of the sovereign Medium-Term Note (MTN) programme.
According to a press release from the Executive, the total ceiling of the programme will be raised from EUR 90 billion to EUR 99 billion.
"The MTN programme is a non-committed facility concluded between the Ministry of Finance, acting as issuer, and a group of selected financial institutions, under which periodic issues of government securities may be launched on external markets on the basis of standard contractual documentation. It enables bond issuances on international capital markets in line with legal procedures, offering the issuer the advantage of accessing capital markets more quickly than would be required for each individual transaction, as well as flexibility in structuring issuance parameters in line with the government public debt management strategy," the press release said.
The Government added that, "by using standard legal documentation on the basis of which bond issues can be carried out on external markets, the Ministry of Finance aims to continue predictable, transparent and flexible financing policies that support the reduction of costs over the medium and long term and ensure Romania's constant presence on these markets, avoiding abrupt and unjustified changes in behaviour, such as prolonged absences from external bond issuance."
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