Romanian state to borrow EUR 26 million/day in June

The Public Finance Ministry (MFP) has planned loans totalling RON 3.63 billion from commercial banks in June, of which RON 3.2 billion through state bond auctions and treasury certificates, to which RON 435 million could be added through extra sessions of non-competitive offers related to bond auctions.

The sums will be used for refinancing the public debt and financing the state budget deficit. Compared to May, MFP’s planned loans are EUR 200 million lower.

MFP has programmed an auction for June 7 for discounted treasury certificates worth RON 300 million over 182 days. MFP also organised a similar auction in May, worth RON 500 million, but only borrowed RON 185.2 million from banks for 12 months, at an average yield of 2.89 percent per year.

The seven benchmark bond auctions, with a total value of RON 2.9 billion, will be followed by an additional session for non-competitive offers, with a value of 15 percent of the initial value of the bond issuance.

For Q2 2018, MFP has announced its intent to attract an indicative volume of RON 12-14 billion in state bonds issued on the internal market.

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MFP plans to issue state bonds worth RON 48-50 billion in 2018, with a maturity structure of around 30/70 percent by issuing short-term discounted treasury certificates of up to a year, medium and long-term benchmark state bonds, as well as state bonds for the population through the operative units of the State Treasury, through the TEZAUR programme, with an estimated volume of up to 8 percent of the value of state bonds issued on the internal markets, around RON 4 billion.