Romania borrows at the highest interest rates in the region, warns the Minister of Finance
Romania currently pays the highest interest rates in the region for state loans, with rates ranging between 7% and 8%, says Finance Minister Tánczos Barna. The situation is caused by the high budget deficit of the country.
Romania borrows at the highest interest rates in the region, warns the Minister of Finance
To manage this situation, the minister proposes borrowing mainly from the domestic market, through the Tezaur and Fidelis programs intended for Romanians, and sending signals of stability to investors by respecting the 7% deficit target and by prudent management of expenses.
“The interest rates are the highest in the area, unfortunately, because Romania has the biggest deficit,” Tánczos Barna explains at Digi 24, noting that the country attracts investors, including from America, to finance its deficit.
The minister recommends Romanians to invest in Tezaur and Fidelis government bonds, which he describes as “the most profitable investments at the moment”, with the advantage that the interest paid remains in the national economy.
“In vain we give the signal that we have a budget in January if we do not respect the commitments. The fact that we maintain the 7% deficit commitment and that we will control spending every month will be positive signals for investors,” explained Tánczos Barna.
The Ministry of Finance has already announced measures to reduce expenses, including a 5% decrease in operating expenses in most ministries, except for some critical areas.
Source: www.mediafax.ro
