Romania Sells $5.6 Billion in Foreign Bonds After Austerity Plan

Romania tapped international markets for the third time this year with a $5.6 billion bond sale after the government’s austerity package fueled a rally in its debt securities.

The Black Sea nation offered hard-currency bonds after ending months of political turmoil related to presidential elections that pushed its borrowing costs to the highest in the European Union. The victory of a centrist candidate over a far-right contender in May has triggered a rebound in the country’s assets, which received a further boost when the new government presented spending cuts and tax hikes to curb the EU’s widest budget gap.