The Minister of Finance, Alexandru Nazare, warns that political instability affects financing costs: Romania is facing a rapid increase in interest rates on loans, reaching 7.3% for 10-year bonds.

Romania has recorded a rapid increase in loan interest rates, with the yield on 10-year government bonds reaching 7.3%, compared to 6.7% in April. The Minister of Finance, Alexandru Nazare, emphasized that this development reflects the deterioration of investment perception due to political tensions. Romania is now borrowing more expensively than Hungary, and the yield difference has increased to 120 basis points. Nazare warned that rating agencies are closely monitoring the situation and demand clarity regarding fiscal direction and reforms. A downgrade to "junk" status would lead to higher borrowing costs and the withdrawal of investors. Romania is in a vulnerable position, having the largest deficit in the EU and rapidly increasing public debt. Additionally, the country needs to attract 10 billion euros from the PNRR by 2026, and political blockages could affect the completion of necessary reforms. Nazare emphasized that the economy needs continuity and fiscal discipline, not instability.