Romania borrowed $600 million from the public through the "blood-for-bonds" program

Romania’s Ministry of Finance has launched an unconventional campaign to finance the national debt, according to Bloomberg. To cover a significant budget deficit and, at the same time, alleviate the country’s chronic shortage of donated blood, the government is offering donors the opportunity to purchase government bonds with a yield of over 7%. This is 1 percentage point higher than the rate available to most retail investors.

Since the beginning of 2025, the “blood-for-bonds” campaign has raised about 2.8 billion lei ($604 million) from tens of thousands of private investors, according to Bloomberg. Overall, bond sales to retail investors, including this program, account for nearly one-fifth of the Romanian government’s total borrowing needs.

Romanian Treasury Minister Stefan Nanu notes that the program, which launched in 2023, has zero marketing costs and receives free television advertising. The social benefits, he says, justify the additional costs. “Our goal is not to enrich a select few, but to promote blood donation,” adds Nanu.

Donors, such as 46-year-old project manager Ionuț Nedelia, endure hours-long lines to donate blood. They then have to upload a donation certificate to a brokerage account to receive financial compensation. “You can spend half a day just on the donation itself,” said Nedelia, “but it’s definitely worth it.”

Laviniu Beze, head of the Romanian Association of Retail Traders, donates blood four times a year and has increased the share of such bonds in his portfolio to 40%: “Trading is in my blood. As an investor, even if you get just one percentage point more, you should, of course, take advantage of it.”

Romania is just one of the countries seeking to involve the public in financing government spending. Against the backdrop of a sharp rise in public debt, governments from Italy to Japan and Brazil are experimenting with new ways to attract investors, Bloomberg explains.

According to the Organization for Economic Cooperation and Development (OECD), households held 11% of public debt in the countries surveyed in 2024, more than double the share in 2021. Over the course of the year (through October 2025), six countries issued new securities for retail investors, and six more planned to do the same, according to Bloomberg.

In Japan, bond sales to private individuals reached a record high: from April through September, 5.14 trillion yen ($33 billion) worth of bonds were sold, an 84% increase from the previous year. To promote the bonds, the country is using cartoon characters such as Kokusai-sensei (the Government Bond Teacher). A new marketing campaign launched in August, positioning the investments as “a win for everyone.”

“Every little bit helps,” said Moritz Kremer, chief economist at the German bank Landesbank Baden-Württemberg and former chief ratings analyst at S&P Global, in comments to Bloomberg. “Governments are trying to secure whatever credit resources they can get.”

However, experts warn that winning the trust of households comes at a price: treasuries have to offer tax breaks or higher returns. Furthermore, in most countries, the amounts invested are too small to significantly reduce the deficit, and successful programs draw money out of consumers’ savings accounts, creating risks for banks and financial stability.

"I don't think it's worth it. It's no longer a cheap source of debt," said Sunil Krishnan, head of the multi-asset division at Aviva Investors, in comments to Bloomberg.

This article was AI-translated and verified by a human editor