Lack of trust in authorities, corruption and low living standards are the main reasons why young people leave Romania. The data is part of a… Mai mult›
Massive increase in import of electricity, stimulated by government policy: 38% in first five months. Trend continues
Romania imported 38% more electricity in the first five months of this year, compared to the same period of 2018, according to the most recent… Mai mult›
The Ministry of Public Finance announces that it has issued the methodological norms for the implementation of the Program for supporting small and medium-sized enterprises… Mai mult›
Government is trying to save budget deficit: reductions in public administration system, cancellation of bonus for harmful conditions, excise duty on soft drinks
The Government is preparing the public for the first measures aimed at avoiding the budget slippage, which would be applied by the PSD-ALDE government. News… Mai mult›
Romania is the EU country with the fewest cars in terms of the number of inhabitants, according to data recently published by Eurostat. We appear… Mai mult›
It becomes increasingly harder for the state to borrow: Finance Ministry has attracted only a quarter of targeted 400 million
de Adrian N Ionescu , 28.1.2019
The Ministry of Finance (MFP) has only managed to sell five-year government bonds amounted to RON 110 million out of the RON 400 million issued on the primary market on Monday, at an average yield of 4.73%.
The total volume of demand expressed by investors was only RON 241 million, but the MFP interest rate was 4.50%.
It is the sixth of seven issues this year with which MFPs have attracted lower amounts than expected.
A week ago, government bonds of only RON 248.8 million were sold, 62% of the volume demanded by MFP.
Causes: Unpredictability and lack of budget
The lack of investors’ appetite comes in the context of OUG 114/2018 adoption, the famous ordinance on greed promoted by Eugen Teodorovici and Darius Vilcov, by which the Government imposed a tax on bank assets.
Moreover, the financial markets are worried about the lack of 2019 budget draft and imbalances without a solution as convincing as possible, which the draft’s delay is hiding.
Romania will see in 2019 the highest growth in the Central and Eastern Europe (CEE) in 10-year government bond yields because of the adverse effects of “Teodorovici Ordinance”.