Romania`s Finance Ministry takes EUR 1bn from 8 banks through a "club loan"

However, Rekkers did not offer more details on the structure of the loan or its destination.

According to Business Standard, BCR, BRD, UniCredit, Raiffeisen, Banca Transilvania, Volksbank, Bancpost and Alpha Bank lent the state one billion euros, each bank coming with different amounts in the structure of the loan, for an interest rate that could stand at 5 percent per year. 

The “club loan” financing is more flexible than a syndicated loan or a bond issue and represents an alternative to state securities. 

MFP has collected some 47.8 billion lei (more than 10 billion euros) since the beginning of the year from the issue of treasury certificates with discount and benchmark bonds. 

The government established a budget gap target of 4.6 percent of the gross domestic product (GDP) for the year, the equivalent of 24.3 billion lei, following the agreement inked with the International Monetary Fund (IMF), which set Romania quarterly targets for the budget deficit: 14.5 billion lei at the end of the second quarter and maximum 18.6 billion lei for the third quarter.

Finance Minister Gheorghe Pogea declared the budget deficit reached 2.7 percent of the GDP at mid-year, according to the last estimates, below the target established with the IMF at 2.73 percent.