Romania intends to substantially decrease its Eurobond issuance in 2026 to €10 billion, a notable reduction from the €16 billion issued in 2025, which positioned it as one of the largest emerging market debt issuers globally. This strategic shift is driven by pre-financing efforts and a reliance on diverse non-market funding sources. Despite facing higher nominal gross financing needs in 2026, the government aims to manage its debt through mechanisms such as Resilience funds, SAFE defense funding, private placements, and support from International Financial Institutions (IFIs).
The country's gross financing needs are projected to increase to between RON 275 billion and RON 285 billion (€54 billion to €56 billion) in 2026, up from RON 269 billion (under €53 billion) in 2025. However, as a percentage of GDP, these needs are expected to diminish from 14.1% to 13.5%-14.0%. Fiscal consolidation is anticipated to be between 0.9% and 1.4% of GDP in 2026, following an 8.4% fiscal gap in 2025. This consolidation, coupled with increased debt rollovers (RON 150 billion in 2026 compared to RON 99 billion in 2025), impacts the overall financing strategy.
Romania is actively diversifying its funding. It expects to secure €6 billion from EU recovery and resilience funds, tap into the new SAFE defense funding mechanism, and obtain €1.5 billion from international lenders such as the World Bank and European Bank for Reconstruction and Development. Additionally, €3 billion is anticipated from mostly loan-format private placements, with some arrangements already in advanced stages. These non-market sources are crucial to supporting the reduced Eurobond issuance plan, allowing for greater flexibility and reduced reliance on market conditions.
