Romania Taps Part of FX Buffer to Cover Spending Amid Turmoil
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Romania had to tap part of its funding buffer to cover a peak in payments of about €6 billion ($6.3 billion) in the past two months amid rising political tensions that affected investor appetite, Finance Minister Marcel Bolos said.
Romania’s budget deficit, which was already poised to be the highest among European Union member states this year, will likely widen beyond the government’s target of 7% of economic output. The recent political crisis, triggered by the shock victory of a pro-Russian candidate in the first round of the presidential election, pushed Romanian bond yields higher.