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January 27, 2023

Finance Ministry borrows RON 1 bln at record low cost

The Public Finance Ministry has borrowed RON 1 bln on Monday by selling 12-month treasury certificates, the cost being the lowest so far for operations that feature this maturity. The average yield has dropped to 1.63 per cent, a new record low for financial instruments with 12-month maturity. Previously, the lowest cost for this maturity was registered at the end of October when the state borrowed RON 800 M at a yield of 1.9 per cent.
The treasury has received offers of RON 2.24 bln from banks, but has drawn solely the RON 1 bln sum planned in line with the borrowing prospect for November.
The Treasury has announced that it wants to borrow RON 3.645 bln in November by selling treasury certificates with 12-year maturity and bonds with three, five, seven, ten and 15-year maturity.
Since the start of the year the Finance Ministry has borrowed RON 35.966 bln from the internal market and EUR 928.7 M through the sale of state bonds, including the sum drawn through Monday’s tender.
Apart from these loans, one has to add the sums drawn from international markets, namely USD 2 bln and EUR 2.75 bln, through four sessions of issuing bonds with 10 and 30-year maturities.

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