Finances

MOLDOVA MAY PLACE EUROBONDS WITH YIELD OF 3-3.5% – GOVERNMENTAL SOURCE

14 january, 2021

The cost of eurobonds placement by Moldova will not exceed 3-3.5%, a source in the Moldovan Government told Infotag. According to it, such a yield is forecasted by the representatives of foreign banks, who consulted the Government on the eurobonds issue question.

According to the source, in 2020 the Moldovan Government consulted two international banks concerning an issue of eurobonds to an amount of 500 million euros for 5 years, “And our calculations are showing that the interest rate on Moldovan eurobonds in favorable circumstances may be even 2.5-3%”.

The source underlined that the International Monetary Fund insistently recommends Moldova to increase investment in the national economy.

“Presently, such investment constitutes 3% GDP or some US$700-800 million per year. To fulfill the IMF recommendation, we should increase the investment by another 4-5%”, said the governmental source.

Earlier, President of the National Bank of Moldova Octavian Armasu said, commenting on the idea of issuing eurobonds, that the placement of bonds at the external market for financing long-term investment projects is a widespread practice.

“What is important are the price and time of receiving the money, which depend on the country’s rating and in case of some developing countries they matter for their budgets”, said Armasu.

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