The Executive will have the possibility to diversify the financing instruments made available by governments and governmental entities for projects of national strategic interest, including national defense and security, such as accessing funds, under advantageous financial conditions, through the Foreign Military Financing (FMF) mechanism offered by the US administration to the governments of other states.
„Under the FMF mechanism, funds of up to USD 4 billion are approved for direct loans, with the possibility of repayment in 12 years, after a one year grace period, at an advantageous interest rate (close to the US financing cost, to which a margin is added), as well as funds of up to USD 8 billion, attracted by taking out loans from the financial markets, guaranteed by the US government. In addition to the contracts for the acquisition of military technique/equipment of the Ministry of National Defense, other contracts carried out by state-owned companies that are part of the National Defense Strategy and that could be eligible for financing under this mechanism have been identified,” the government informs in a press release on Wednesday.
The piece of legislation approved by the government in Wednesday’s meeting introduces new regulations to allow the online purchase of Treasury bonds, in the context in which the Ministry of Finance is preparing the implementation of new technical solutions that allow the purchase of Treasury bonds including online, which will allow a more comprehensive distribution of these securities, with new ways of subscription and payment at maturity, the release explains.
„The Ministry of Finance thus responds to requests to facilitate access to the purchase of Treasury bonds including to persons with Romanian citizenship in the diaspora and expands the investor base of individuals, contributing to the development of the domestic market of government bonds and supporting the financing process of the Romanian state on the domestic market through these instruments,” the government also says.
AGERPRES
