Romania’s Ministry of Finance announced that yields on government bonds under the Fidelis scheme for households will be lower in February than in January – by 25 to 30 basis points. The decrease follows another 40-45 bp cut during Q3 last year and will bring the yields to 6.15%-7.25% for local currency bonds with 4-6 year maturities and 3.6%-6.0% for bonds denominated in euros with maturities of 3-10 years.

The coupons for the Terzaur bonds, with maturities of 1-5 years, have not been announced yet – but the yield curve generated by Fidelis issues indicates a 6.05-6.1% coupon for the 1-year bonds. This is still marginally above the net interest generated by bank deposits, subject to 10% income tax, unlike the government bonds. 

Specifically, the government will pay 6.15% coupon for 2-year Fidelis bonds in February, down from 6.45% in January and 6.55% in December. The coupon for this maturity was 7.2% in September.

For 4 years, the coupon is 6.75% in February, down from 7.1% in December-January. For a 6-year maturity, the coupon is 7.25%, down from 7.5% in December-January.

For the bonds denominated in euros, the government will pay tax-free coupons of 3.6% for 3-year maturity (3.75% in December-January, 4.15% in October), 4.5% for 7-year maturity (4.75% in December-January, down from 5.6% in June 2025) and 6.0% for 10-year maturity (6.2% in December-January, 6.5% in August 2025).

iulian@romania-insider.com

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