BUSINESS

Erste: Financing costs could rise

Romania’s financing costs could rise in the time left until the end of this year and even afterwards, as a consequence of Premier Victor Ponta’s “bewildering” statement according to which budget needs are not covered in the last 45 days of this year, Erste analysts believe. “The yields (of state bonds – editor’s note) have maintained their upward trend this week, while the Central Bank continued to limit liquidity in the market through one-week repo tenders (RON 6 bln), in an attempt to react to the RON’s weakening. Moreover, Premier Ponta’s bewildering statement – subsequently taken back – according to which the financing needs of the last 45 days of this years are not covered hikes uncertainty and the investors will not shy away from bidding higher in the time left until the end of this year and even afterwards,” an Erste analysis reads.Moreover, the inflation rate will put pressure on the price of state bonds at least until mid-2013, the possibility that the yields of five-year state bonds will surpass 7 per cent not being ruled out, the Austrian bank’s experts believe.

Related posts

Amid Italian, Spanish debt fears, Euro hits year high against RON

Nine O' Clock

SME taxation: 25,000 bankruptcies and 100,000 unemployed

Nine O' Clock

Alba County ranks high in unemployment

Nine O' Clock

Leave a Comment