Romania’s Treasury has launched new issues of government bonds under the Tezaur and Fidelis schemes, paying yields of 6.75% (1-year) to 7.8% (5-year) for the local currency debt and up to 6.25% (7-year) for euros.

After the Treasury raised RON 21.4 billion (EUR 4 billion) under the two schemes year to date, the households’ demand for government debt in general and in particular for those denominated in local currency is likely to diminish amid volatile market and outlook of local currency depreciation. 

On the interbank market, the government has already paid 8.45% for 14-month bonds, comparable to the 1-year bonds issued under both Fidelis and Tezaur schemes to households. 

iulian@romania-insider.com

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