Romania’s borrowing rates for RON and EUR loans decreased by 10 to 45 basis points (0.1%-0.45%) in the last month, across all maturities, announced Finance Minister Alexandru Nazare on Monday in a Facebook post.
According to him, if fiscal adjustments continue and inflation falls to approximately 4% by the end of the year, there are chances that RON interest rates will drop below 6% for all maturities. Compared to 6 months ago, interest rates have fallen sharply, from levels of over 7% across the entire maturity curve for RON government bonds (see Romania Yield Curve chart).
Minister Nazare: We are reducing interest costs for the state and helping borrowing companies and local authorities
„Further good news for Romania: RON loans interest rates have fallen sharply compared to a month ago, by approximately 10-40 basis points for all maturities, especially for medium terms (3-5 years). The trend began in the last quarter of 2025 and continues at the beginning of 2026. It is a trend that we want to maintain in 2026, to continue lowering financing costs in RON. If fiscal adjustments carry on and inflation falls to approximately 4% by the end of the year, there are chances that interest rates in RON will drop below 6% for all maturities – short ones (1-2 years – n.d.) being already below this level”, Nazare said on Monday.
„This will reduce interest costs for the state and will also help companies or local authorities that borrow, with state interest rates being a benchmark for the rest of the market,” he added.
The Minister of Finance pointed out that even interest rates for EUR financing dropped: by 20–29 basis points on medium maturities (3–5 years) and up to 45 basis points on long maturities (6–25 years).
Romania’s sovereign risk premium decreases
„At the same time, the perceived risk for Romania’s EUR bonds (10 years) has decreased sharply since July 2025: from approximately 354 basis points to approximately 241 basis points (a decrease of approximately 112 basis points),” Nazare also announced.
The minister also pointed out that „Romania can borrow more cheaply, which means less money spent on interest and more money that can go towards investments or other needs of the economy.” „Moreover, this shows that investors have more confidence in Romania. Therefore, a major objective remains to reduce the additional cost that Romania pays on loans, compared to other countries in the region with the same rating, due to the perceived risk,” concluded the Minister of Finance.
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