Romania faces major debt crunch in November

BoyRacer · September 16, 2010, 8:19pm

Romania faces major debt crunch in November -> guardian.co.uk/business/feedarticle/9268557

Romania accumulating arrears, not meeting issuance plans

Borrowing needs in Nov close to debt sales for all 2008

Yields to spiral higher as and when Romania gives up cap

Could yet need more IMF funding on top of current bailout

By Marius Zaharia
BUCHAREST, Sept 16 (Reuters) - Romania has painted itself into a corner by refusing to sell bonds at yields higher than 7 percent and faces a funding crunch in November when it may end up paying significantly more.
The fragile coalition government is struggling to push through austerity measures to keep a 20 billion euro International Monetary Fund-led bailout on track, pushing market interest rates on Romanian debt ever higher.
But the ministry has refused to give in to this verdict from investors, arguing that the eye-watering austerity measures they are taking will eventually bring yields down and that in the meantime extra cash can be found on foreign debt markets.

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