The Finance Ministry managed to take the financial market by surprise on Wednesday, when it announced a T-bill issue worth $100 million, which it wants to launch today.
"We can only voice consternation, as we have received no notification," said the treasurer of a bank that was reached by the issue notice some time after the press release of the Finance Ministry. And this was not a singular case.
The Finance Ministry is not worried about the extremely short interval between the notice and the auction, as the banks are very likely to directly bid for the T-bills, as proven by the investor portfolio structure for the previous issues. The ministry wants to sell foreign currency T-bills worth 100 million dollars, maturing in three years.
The face value of one bill will amount to 10,000 dollars, with the (fixed) rates to be paid annually.
"The market is not open to long terms, so that we are switching to foreign currency, because we care a lot for the maturity and the price. Moreover, the debt service is rendered difficult by prolonged short-term ROL financing. Alternating from one instrument to another is a management option," Enache Jiru, head of the State Treasury told Ziarul Financiar.
Jiru admits the Finance Ministry's strategy had been built around a different estimate, so that adjustments are now in order. The ministry's plans were also changed because of the National Bank's announcement about maintaining the current rate levels.
The Finance Ministry is now certain that long-term T-bills cannot work without price compromises.
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