The Eurobonds will have maturities of 7, 15 and 30 years, but the Ministry of Finance did not announce the indicative amount. The Finance Ministry hopes to borrow money from international investors at interest rates of 2.4% per year for the 7-year bonds, 3.8% for the 15-year bonds and 4.9% for the 30-year securities. The issuances are brokered by Citi, Erste Group Bank AG, ING Bank NV, JP Morgan and Societe Generale.
At the same time, the measure was criticized by political opponents and financial experts. According to former Prime Minister Victor Ponta, the projected 3-billion EUR loan will have “the highest cost in Romania’s history and will hold the longest term in the country’s history”. Ponta stressed that the money will not be used for investments, but will be directed towards paying current expenses with pensions and salaries, therefore “Romania’s debts will only grow larger.”
