MONTHLY REPORT

March 31-st, 2020

page Credit rating

Moody's S&P Fitch

Baa3 BBB- BBB-

Public debt according to national legislation (the GEO no 64/2007) includes:

public government debt representing indebtedness incurred directly or guaranteed by the Romanian Government through MoPF , including

the amounts advanced temporary from the State Treasury accounts and debt contracted by the line ministries.

local public debt representing indebtedness incurred directly or guaranteed by the local administration unit.

Government debt according to EU methodology, means total gross debt at nominal value outstanding at the end of the year and consolidated at general government subsectors level.

A. PUBLIC DEBT ACCORDING TO NATIONAL LEGISLATION

I . Borrowing requirement

1. Borrowing requirement 2019

RON mil. % of GDP RON mil. % of GDP

91.565,8 8,64% 119.903,7 11,08%

48.300,2 4,56% 72.500,7 6,70%

43.265,6 4,08% 47.403,0 4,38%

27.415,1 33.447,0

7.117,5 9.680,0

6.933,0 1.921,0

1.800,0 2.355,0*) debt repaid from budgetGDP: according to fiscal notification from

April 2020 GDP 1.059.803,0 1.082.140,0**) financing needs updated at the time of reporting

2. Actual borrowing in 2019 up to March, 31-st (RON mil. )

Total reimbursable financing 39.013,9 RON mil.o/w:

By Instrument by Currency by Market

MFP T-Bills & householders 1.451,2 RON 22.114,4 Domestic 22.114,4

Cash Management instruments 3.501,5

T-Bonds denominated in RON 17.161,7

Retail bonds 0,0 EUR 16.568,5 External 16.568,5

T-Bonds denominated in EURO 0,0

Eurobonds 14.476,2 USD 0,0

FX loans 2.092,3

total 38.682,9 38.682,9 38.682,9

Local governments 331,0

32,5%

II. Public debt stock and changes in stock

1. Public debt evolution

RON mil. % of total RON mil. % din total RON mil. % of total

Outstanding of public debt 448.948,5 478.843,7o/w

a) by type of sector 448.948,5 100,0% 478.843,7 100,0% 29.895,2 6,7%

Government public debt 432.481,5 96,3% 462.847,7 96,7% 30.366,2 7,0%

Local public debt 16.467,0 3,7% 15.996,0 3,3% -471,0 -2,9%

b) by type of debt 448.948,5 100,0% 478.843,7 100,0% 29.895,2 6,7%

Direct public debt 429.743,9 95,7% 459.705,9 96,0% 29.962,0 7,0%

Guaranteed public debt 19.204,6 4,3% 19.137,8 4,0% -66,8 -0,3%

c) by the residence of creditor 448.948,5 100,0% 478.843,7 100,0% 29.895,2 6,7%

External 173.886,7 38,7% 194.344,0 40,6% 20.457,3 11,8%

Domestic 275.061,8 61,3% 284.499,7 59,4% 9.437,9 3,4%

Total public debt 448.948,5 478.843,7 29.895,2 6,7%

Outstanding of Public debt /GDP 42,4% 44,2% 1,9%

1.059.803,0 1.082.140,0

- the difference in absolute value / percentage is due to the rounding of the calculation formula in excel

GDP: according to fiscal notification from April 2020

December, 2019

- principal repayments on local loans

Financing needs, o/w:

1. Deficit of general consolidated budget

2. Principal repayments*, o/w:

- refinancing of eurobonds

- principal repayments on external loans:

A. PUBLIC DEBT ACCORDING TO NATIONAL LEGISLATION ….….…………...…...……………………..1

I. Financing needs and sources....…...………........….….………….......…...……..……….……..…...…….1 1. Borrowing requirement in 2020 …….…..........…....….......…………………………..………………..……..1 2. Actual borrowings in 2020…..........…..…………….……………..…………..…………….…………………1

4. Holdings of government securities……....………......……....…….….…………………….…….……………3

IV. Cost of the government public debt……...………....…..……......……..…….………..….…………..….…5

II. Public debt stock……............…...…..….….……......….…..………….…………………….….…..…………1 1. Public debt stock evolution……........……………………….………..…………..………..………..……….….1 2. Government public debt evolution…………….....…..………………………………………….………………2 3. Government securities evolution………...….……...........……...……………………………….…..…………2

III. Primary and secondary market of government securities............................................................…....3

1. Primary market of government securities …...............................................……..……………..……………3 2. Secondary market of government securities.....….….......……………………..………….…….……………4

2019 2020**)

V. Implementation of the Debt Management Strategy on medium term ...........………...…...….….……5 1.Currency risk……..…….………………...………….........………………….………………………..…………5

- the difference in absolute value / percentage is due to the rounding of the calculation formula in excel

change

- refinancing of government securities issued on domestic

2. Refinancing risk…..…………………….......……………...….……....………………….………..……………6 3. Interest rate risk……........………….......……….……..…………….….……….……………………………..6

B. PUBLIC DEBT ACCORDING TO EUROPEAN METHODOLOGY…........…..…..…….….......……………7

March 2020

Ratio of covering of financing needs:

1

2. Government public debt evolution

RON mil. %

Total government public debt , o/w 30.366,2 7,0%

1. After the market issuance

External , o/w: 18.427,9 11,1%

By instruments

Eurobonds 131.382,6 16.391,6 12,5%

loans 34.346,2 2.036,3 5,9%

By currency

RON 37,5 -4,7 -12,5%

USD 29.123,3 885,3 3,0%

EURO 134.591,7 17.558,0 13,0%

others 1.976,3 -10,7 -0,5%

By creditor

multilateral 33.779,3 2.052,8 6,1%

bilateral 75,1 0,5 0,7%

private banks and others 131.874,4 16.374,6 12,4%

By interest rate

fixed 152.800,0 16.477,8 10,8%

floating 12.928,8 1.950,1 15,1%

Domestic, o/w: 11.938,3 4,5%By instruments

T-bills 1.660,5 1.048,0 63,1%

Cash management instruments 3.501,5

Bonds 182.760,1 7.788,5 4,3%

Retail bonds issued under the

Program TEZAUR 5.240,5 -134,7

loans 17.738,2 20,7 0,1%

others 59.353,4 -285,7 -0,5%

By currency

RON 245.154,2 11.855,9 4,8%USD 11,1 0,4 3,6%EURO 21.587,4 82,0 0,4%others

By creditor

multilateral 0,0 0,0 0,0%

bilateral 0,0 0,0 0,0%

private banks and others 266.752,7 11.938,3 4,5%

By interest rate

fixed 182.760,1 12.894,3 7,1%

floating 83.992,6 -956,0 -1,1%

2. After residence of the creditor

External 170.700,6 14.989,2 8,8%

Domestic 261.780,9 15.377,0 5,9%

Government public debt /GDP 40,8% 42,8% 2,0%

GDP (mln RON ) 1.059.803,0 1.082.140,0

- the difference in absolute value / percentage is due to the rounding of the calculation formula in excel

3. Government securities market developments

The weighted average value of the remaining maturity relating to the

outstanding government securities issued on domestic market at the end of March 2020 is

3,7 years and 12,2 years for Eurobonds issued on external markets.

3.501,5

11,521.669,4

83.036,6

185.689,8

169.277,8

17.758,9

59.067,7

257.010,1

14.878,9

2.708,5

190.548,6

5.105,8

462.847,7

December, 2019 March 2020

148.249,0

RON mil. RON mil.

432.481,5

change

75,6

32,8

30.008,6

152.149,7

1.965,6

165.728,8 184.156,7

147.774,2

36.382,5

266.752,7 278.691,0

35.832,1

277.157,9

0,0

0,0

278.691,0

195.654,4

0 2000 4000 6000 8000 10000 12000

ROAW5KY5CD78

RO1521DBN041

RO1823DBN025

RO1522DBN056

RO1320DBN022

RO1624DBN027

RO1121DBN032

RO1323DBN018

RO1425DBN029

RO0520DBN0L3

RO0520DBN0Y6

RO1227DBN011

RO1631DBN055

RO1722DBN045

RO1720DBN072

RO1821DBN052

ROGV3LGNPCW9

ROHRVN7NLNO2

ROVRZSEM3E4

ROGRXAE5BEO2

ROD9TE7MEES0

RO4KELYFLVK4

RODD24CXRK47

Domestic benchmark bonds denominated in RON cumulative total

issued before 2019

issued between 1 January – 31 March 2020

0,0

10.000,0

20.000,0

30.000,0

40.000,0

50.000,0

60.000,0

70.000,0

6luni 1 an 2 ani 3 ani 4 ani 5 ani 7 ani 8 ani 10 ani 15 ani

RON mil.Outstanding government securities issued on domestic market by initial maturity

31 December 2019 31 March 2020

0,0

1,0

2,0

3,0

4,0

5,0

6,0

7,0

8,0

7Y (EUR) 10Y (EUR) 12Y (EUR) 15Y (EUR) 20Y (EUR) 30Y (EUR) 10Y (USD) 30Y (USD)

denominated in EUR bil.

Outstanding eurobonds issued on external market by initial maturity

31 December 2019 31 March 2020

0,0

10.000,0

20.000,0

30.000,0

40.000,0

50.000,0

60.000,0

70.000,0

short term < 1year

[1-3) years [3-5) years [5-7) years [7-10) years > 10 years

RON mil.

Remaining maturities for domestic and external government securities

internal market external market

2

4. Holdings of government securities

Holdings of government securities issued on domestic market

1. Banking system 47,7%

2. Central Depository 0,1%

3. Clients holdings: 52,3%

19,5%

32,8%

19,0%

100,0%

*) includes government securities held by Clearstream

Holdings of government securities denominated in RON Holdings of government securities denominated in EUR

issued on domestic market issued on domestic market

Categ

1. Banking system 64,0%

2. Central Depository 36,0%

3. 53,8% 22,8%

non 19,2% 13,1%reside

nts, 34,7% 1,1%private

pensio 20,7% 100,00%

Total 100,0% *) includes government securities held by Clearstream

*) includes government securities held by Clearstream

III. Primary and secondary market of government securities

1. Primary market of government securities

*calculated as amount of bids submitted/accepted amounts

176.383,9

36,5

36.570,9 Total 3.470,4

61.176,3 private pension funds

791,5

33.781,5 residents, o/w: 456,2

94.957,8 non residents*)

Available at nominal

value (EUR mil.)(%) total

81.311,646,2%

1. Banking system 2.222,7

114,5 3. Clients holdings: 1.247,7

Total 193.129,9

36.747,0

63.377,6

Available at nominal value (RON mil.) (%) total Category

non residents *) 37.600,8

residents, o/w:

private pension funds

100.978,5

114,5

92.037,0

(%) totalCategory Available at nominal value (RON

mil.)

13%

13%

42%

15%

17%

Government securities issued in March 2020by initial maturity

< 6 luni

3 ani

5 ani

7 ani

15 ani

3,022,95

3,55 3,70

3,37

3,98 3,79 4,17

4,47

3,02 3,26

3,643,78

4,124,10

4,10

4,675,07

0,00

1,00

2,00

3,00

4,00

5,00

6,00

6 luni 12 luni 2 ani 3 ani 4 ani 5 ani 7 ani 10 ani 15 ani

(%) Yield curve for government securities issued on domestic market in RON

31-mar-20 31-dec-19

0

1.000

2.000

3.000

4.000

5.000

6.000

7.000

8.000

RON mil.

Government securities issued on domestic market

RON EUR

0

500

1000

1500

2000

2500

3000

3500

mil. of currency.Eurobonds issued on external market between

March 2019 and March 2020

EUR

0,0

0,5

1,0

1,5

2,0

2,5

3,0

0,0

2.000,0

4.000,0

6.000,0

8.000,0

10.000,0

12.000,0

14.000,0

16.000,0

18.000,0

RO

N m

il. Report bid-to-cover for Government securities issued on the internal marketdenominated in RON *

Amount of tenders submitted Accepted amounts bid-to-cover ratio

3

2. Secondary market of government securities

3. Turnover of securities in the secondary market

IV. Cost of the government public debt

Interest payments on government public debt*)

RON mil. 2020

domestic debt 1.922,1

external debt 1.422,2

total 3.344,3

*) includes payments on direct and guaranteed debt for March 2020

*) liquidity degree is calculated as ratio between the total volume of monthly

transactions and the total volume of the government securities.

*) does not include interest for temporary financing. It was calculated dividing annually interest

payments by stock at the end of March 2020

3,1%

3,3%

4,0%

4,2%

5,2%

3,0%

4,4%

3,7%

3,8%4,1%

4,2%4,3%

4,4%

5,3%

6,0%

0,0%

1,0%

2,0%

3,0%

4,0%

5,0%

6,0%

7,0%

6 luni 1 an 2 ani 3 ani 4 ani 5 ani 6 ani 7 ani 10 ani 15 ani

BID Fixing quotation vs yields by remaining maturity as of the 31-st of March 2020

BID/FIX cotatia

randamente pe piata secundara

16,1%

13,8%

15,2%

20,6%20,1%

14,1% 13,9%13,3%

19,1%

12,7%

14,2%

20,2%20,4%

-

5.000,00

10.000,00

15.000,00

20.000,00

25.000,00

30.000,00

35.000,00

40.000,00

0,0%

5,0%

10,0%

15,0%

20,0%

25,0%

Liquidity degree*) of the government securities issued on domestic market traded between March 2019 - March 2020

traded volumes

liquidity degree

0

5000

10000

15000

20000

25000mil.

of cu

rre

ncy

The most traded government securities issued on domestic market in March 2020

2,0%

2,5%

3,0%

3,5%

4,0%

4,5%

5,0%

Dec 2019 Mar 2020

Average cost of government public debt*)

internal debt external debt total debt

-1,2

-0,2

0,8

1,8

2,8

3,8

4,8

5,8

6,8

EUR2039 EUR2049 EUR2020 USD2022 USD2023 USD2024 USD2044

EUR2024 EUR2025 EUR2035 EUR2028 EUR2030 EUR2038 USD 2048

Eurobonds yields

4

V. Implementation of DMS on medium term

1. Currency risk *)

*) the difference in absolute value / percentage is due to the rounding of the calculation formula in excel

2. Refinancing risk

*) based on contracted debt at the end of March 2020

The revised Government Debt Management Strategy for the period 2019-2021 was approved by the Government in September 2019, proposing indicative targets for managing the financial risks

associated with the government debt portfolio. On the medium term, risk indicators fall within the indicative targets of the Strategy. According to the Strategy, the limit mentioned as minimum or

maximum cannot be exceeded during the period covered by the strategy (hard bound), while the other limit represents the limit to which it is stretched and which can be exceeded (soft bound).

14,6%

84,5%

0,9% 0,1%0,0%

10,0%

20,0%

30,0%

40,0%

50,0%

60,0%

70,0%

80,0%

90,0%

USD EURO JPY CAD

Foreign currency exposure in foreign currency debtMarch 31-st, 2020

0,0

5,0

10,0

15,0

20,0

25,0

30,0

35,0

40,0

45,0

50,0

bln

RO

N

Redemption profile*) of external financial package and government securities

BIRD(DPL) loans

UE loans

Eurobonds USD denominated

Eurobonds EUR denominated

Government Securities EURdenominated on internal market

Government securities RONdenominated on internal market

0,0

10,0

20,0

30,0

40,0

50,0

60,0

bln. RONRedemption profile of government public debt*) by market of issuance

internal market external market

49,0%

7,4%

43,0%

0,4% 0,0%0,0%

10,0%

20,0%

30,0%

40,0%

50,0%

60,0%

RON USD EURO JPY CAD

Domestic currency debt in total debtMarch 31-st, 2020

0,0%

10,0%

20,0%

30,0%

40,0%

50,0%

60,0%

70,0%

Performance of domestic currency debt

share of domestic currency debt

target for share LX debt (min 45% )

target for share LX debt ( 60%)

65,0%

70,0%

75,0%

80,0%

85,0%

90,0%

95,0%

Performance of EUR denominated debt in foreign currency debt

share of EUR in foreign currency debt

target for share of EUR (min 80%)

target for share of EUR ( 95%)

5

3. Interest rate risk

0

1

2

3

4

5

6

7

8

Average time to maturity (ATM) for total debt(years)

ATM (years)

indicative range for ATM (min 6 years)

indicative range for ATM ( 7 years)

0%

5%

10%

15%

20%

25%

30%Debt maturing in 1 year (% of total)

debt maturing in 1 year

indicative range for debt maturing in 1 year ( 10%)

indicative range for debt maturing in 1 year (max 20%)

3,4

3,83,7

4,04,1 4,2

4,4 4,3

0

1

2

3

4

5

6

Average time to maturity (ATM) for local currency debt(years)

ATM for local currency debt (years) indicative range for ATM (min 3,5 years )

indicative range for ATM ( 5 years)

0%

5%

10%

15%

20%

25%

30%

35%

Local currency debt maturing in 1 year (% of total)

local currency debt maturing in 1 year

indicative range for local currency debt maturing in 1 year ( 15%)

indicative range for local currency debt maturing in 1 year (max 25%)

0,0

1,0

2,0

3,0

4,0

5,0

6,0

7,0

8,0

Average time to re-fixing (ATR) years

ATR for total debt (years)

indicative range for ATR ( min 6 years- Sept 2019)

indicative range for ATR ( 7 years)

0%

5%

10%

15%

20%

25%

30%

Debt refixing in 1 year (% of total)

debt refixing in 1 year (% of total)

indicative range for debt refixing in 1 year (% of total) (10% )

indicative range for debt refixing in 1 year (% of total) (max 20% )

0,0

1,0

2,0

3,0

4,0

5,0

6,0 Average time to re-fixing (ATR) for local currency debt (years)

ATR for local currency debt (years)

indicative range for ATR (5 years)

indicative range for ATR (min 3,5 years)

0%

5%

10%

15%

20%

25%

30%

35%

Local currency debt re-fixing in 1 year (% of total)

local currency debt refixing in 1 year (% of total)

indicative range for local currency debt re-fixing in 1 year (% of total) ( 15%)

indicative range for local currency debt re-fixing in 1 year (% of total) ( max 25%)

6

B. PUBLIC DEBT ACCORDING TO EU METHODOLOGY

RON million % of total RON mil. % din total mil.RON % din totalGeneral government debt *) 373.509,2 401.839,2 28.330,0 7,6%

%GDP 35,2% 37,9% 2,7%A o/w:Central government debt 358.742,5 96,0% 386.967,9 96,3% 28.225,4 7,9%

Local government debt 14.766,7 4,0% 14.871,3 3,7% 104,6 0,7%

B o/w:

General domestic government debt 200.581,0 53,7% 208.408,7 51,9% 7.827,7 3,9%

General external government debt 172.928,2 46,3% 193.430,5 48,1% 20.502,3 11,9%

**) GDP according to the fiscal notification from April 2020

At the end 2019 government debt represented 35.2% of GDP, well below the level registered in the EU-27 (77,8% of GDP),

and the Euro Zone (84,1% of GDP) (according to Eurostat news release no.65/2020 - April 22-nd, 2020).

December, 2019**) March, 2020**) change

*) - according to EU methodology, the debt to GDP ratio was calculated taking into consideration the sum of GDP for the four last quarters.

0

50

100

150

200

250

300

350

400

numerar si depozite titluri de stat imprumuturi

bln

. R

ON

Government debt by instruments

31 dec 19 31 mar 20

0,0

50,0

100,0

150,0

200,0

250,0

RON EURO USD others

bln

. R

ON

Government debt by currencies

31 dec 19 31 mar 20

0

50

100

150

200

250

300

350

400

450

short term medium and long term

bln

. R

ON

Government debt by initial maturity

31 dec 19 31 mar 20

77,8%

36,9% 36,3% 35,2% 35,1%33,2%

30,8%

22,1%20,4%

8,4%

0,0%

10,0%

20,0%

30,0%

40,0%

50,0%

60,0%

70,0%

80,0%

90,0%

% GDP International comparison Maastricht debt

7