Romania: Finance ministry launches new state securities issue

The finance ministry will continue its Tezaur borrowing programme and launch the second state securities issue for population this year on Mar 4, announced Finance Minister Eugen Teodorovici. The authority will sell four maturities, namely 1-, 2-, 3- and 5-year with coupon rates at 3.5%, 4.0%, 4.5% and 5.0% respectively. The first issue in the Tezaur programme was launched on Feb 4 and did not include the 1-year maturity. It raised more than RON 694mn in rather difficult times for the finance ministry, after failing to convince banks to place in state securities in January.

The government’s Tezaur programme is raising financing from population by avoiding intermediary fees and without interest rate tax. Thus, the borrowing is made via the state-owned Romanian Post and not through banks. The programme was launched in September 2017 and extended last year with a RON 4bn borrowing cap. Yet, the state barely managed to attract RON 2bn even if the programme represented a serious competitor to bank savings by offering significantly higher rates.

 

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