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August 17, 2022

Finance Ministry borrows RON 300 M

The Ministry of Public Finance (MFP) yesterday borrowed RON 300 M by selling 2-year state bonds, thus reaching the exact sum it had planned, at an average yield of 6.35 pc, higher than the 6.2 pc it paid in the auction held at the beginning of October, mediafax reports. Banks’ offers amounted to the total sum of RON 753.3 M. The bonds will reach maturity in July 2014. At the beginning of October, MFP sold bonds with the same maturity interval, worth RON 205 M, at an average yield of 6.2 pc. ING Bank economists comment in a recent report that, if yields continue to remain low, foreign investors will probably continue to abandon the state bonds in RON, which will result in the further devaluation of the Romanian currency. For October, MFP scheduled operations worth RON 4.15 bln through the sale of state bonds and another sum of RON150 M by reopening an emission that will reach maturity in July 2015.

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