Romania`s Finance Ministry rejects all offers filed by banks for one-year treasury certificates
The Public Finance Ministry (MFP) rejected all the offers for treasury certificates maturing in a year, considering the yield demanded by banks unacceptable, according to data of the central lender.
The announced value of the issue was of 1.2 billion lei and banks filed requests of 1.85 billion lei.
At a similar bid on August 10, MFP drew 1.199 billion lei through one-year treasury certificates, for which it pays an average annual yield of 10.42 percent.
The Finance Ministry already issued state securities of 51.2 million lei this year, up four-fold versus the whole 2008.
The International Monetary Fund (IMF) revised the target agreed with the Romanian authorities on the budget deficit at 7.3 percent of the gross domestic product (GDP) this year, versus 4.6 percent as previously established. Moreover, the Fund will allot about 1.75 billion euros from the second installment of the loan granted to Romania to cover the budget gap.
The Finance Ministry Gheorghe Pogea announced Romania's budget gap widened to 3 percent of the GDP in the first seven months.