The Finance Ministry yesterday sold euro-denominated bonds witha three-year maturity worth 939.2 million euros, paying an average4.89%, nearly 0.1% more than in November 2010, when they issuedgovernment bonds worth over 1.3 billion euros with the samematurity.
This time, the targeted amount was 600 million euros, whichcompares with 1 billion euros last autumn. Although in the meantimethe CDS level for Romania (the cost of insurance against the riskof default) has fallen by nearly half a percentage point, theincrease of the euro reference rate countered this favourableeffect. The new precautionary arrangement with the IMF and thedownward trend of the budget deficit did not have a positive impacton the cost of state funding against last year, either.
"The CDS decline was offset by the increase in the referenceinterest, so the price remained relatively unchanged for thismaturity. I think the amount attracted is very satisfactory, allthe more since big banks are no longer required to keep theirexposures on Romania," comments Marius Stoica, director ofBRD-SocGen's treasury.
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