Romanian PM Meets JP Morgan-Led Investor Delegation
Bucharest, The Gulf Observer: Romanian Prime Minister Ilie Bolojan met on Monday with a delegation of international financial investors led by U.S. banking giant JP Morgan, as part of a regional tour aimed at assessing investment opportunities and fiscal reforms.
The visit comes as Romania works to address significant fiscal imbalances that have created major financing needs. In July, the government narrowly averted a sovereign downgrade by adopting its first package of budgetary measures, which included a VAT increase and a commitment to freeze public sector wages and pensions through 2026, following similarly austere measures planned for 2025. A second package of fiscal measures has since been advanced for legislative approval.
Despite these efforts, Romania’s budget deficit risks surpassing 8% of GDP this year, exceeding the 7.5% projection previously anticipated by rating agencies Fitch and S&P.
On the financing front, Romania successfully returned to international capital markets, raising €5 billion on July 9 through foreign currency bond sales. This followed earlier issuances of €4 billion in February and €2.75 billion in March, both denominated in U.S. dollars and euros. The combined €11.75 billion raised so far brings the government closer to its €13 billion annual target.
During the meeting, government officials updated investors on the progress of reform packages that have either been implemented or are under parliamentary review.
According to an official government statement, the investor delegation underlined that Romania continues to hold strong interest for international markets, citing both growth opportunities and the necessity of consistent fiscal responsibility. They also highlighted political stability as a crucial factor for sustaining reforms and maintaining predictability in the economic environment.
Joining Prime Minister Bolojan at Victoria Palace were the head of the prime minister’s chancellery, Mihai Jurca, and honorary adviser to the prime minister, Ionuț Dumitru, former chairman of the Fiscal Council.
