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Romania’s government collapsed after lawmakers passed a no-confidence motion by 281 votes, well above the 233 required threshold. The vote was spearheaded by the Partidul Social Democrats (PSD) and supported by the Alliance for the Union of Romanians (AUR), ending the short-lived administration of the government under the Prime Minister Ilie Bolojan. The updated marks a period of political instability, causing its currency, the Romanian leu to hit a record low. Analysts have highlighted concerns about the country’s ability to implement reforms required to access approximately €10bn in EU recovery funds before an August deadline. President Nicusor Dan is expected to begin consultations to form a new cabinet, likely attempting to rebuild a pro-European coalition under a new prime minister. Until a successor is approved, Bolojan will remain as interim premier.
Romania’s bonds traded higher with its EUR 3.75% 2034s up 0.8 points at 88.76, yielding 5.57%.
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