Finance Ministry raises 1.2bn euros from banks, 3 times more than planned

The Finance Ministry yesterday sold euro-denominated one-year treasury bills worth 1.2bn euros, 3 times more than the initial target, at an average yield of 4.9% per annum. The raised sums will be used to fund the budgetary gap and refinance the maturing public debt. The total value of demand from banks reached 1.37bn euros, in the context where the Finance ministry had originally planned to sell bonds with a fixed interest of 5% worth 400m euros. The bonds were subsequently turned into discount T-bills. The sale of euro-denominated bills was a success because banks hold high euro liquidities received from parent companies for which they do not have placement alternatives, say analysts. "The operation was a success. This was expected as the Finance Ministry hasn't raised significant RON sums lately. As long as the 7% yield maintains for RON, euro financing will be the one to be successful. (...)," commented Dragos Cabat, a managing partner with Financial View. He considers the 4.9% yield is good for the current period.