Romania's Govt. promises yields of up to 4.75% in bond issue for population

Romania's Finance Ministry has invited local households to buy Government bonds with maturities of one to five years, which go on sale in July.

The coupons attached range between 3.5% for the one-year bonds to 4.75% for five-year bonds, Hotnews.ro reported. There is no limitation in the amounts subscribed by individual buyers.

The Finance Ministry hasn't published the prospectus yet.

On June 22, the Treasury paid an average yield of just under 3% for one-year bonds sold to banks in an interbank auction. On June 17, it paid a 3.71% average yield for 61-month bonds, well below the 4.75% yield promised to households.

The issuance of Government bonds for the population will continue throughout 2020. The maturities for each issue will be determined according to the interest shown by investors.

In related news, finance minister Florin Citu explained that the money thus raised will be used for investment projects.

"It is an issue of bonds for Romanians who trust the Government," Citu said, according to News.ro.

He assured that Romania would not need support from the International Monetary Fund (IMF) or any other international financial institution this year, despite the public deficit doubling to 6.7% of GDP from 3.6% initially planned.

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