Finance Ministry even less keen on domestic market

The reopening of the eurobond issue released this summer is the only option to fund the budgetary deficit without generating inflation, Finance minister Mihai Tanasescu says. In other words, resorting to the domestic market for financing is considered likely to generate inflation. The Finance Ministry is this way showing determination to cover its budget deficit financing needs from foreign resources almost completely by the end of the year. “We’ve told the banks that if they don’t want to play fair we will turn to the foreign market. Even if this means resorting to foreign resources mainly to finance the deficit,” Finance minister Mihai Tanasescu says. This decision could make the National Bank of Romania (NBR) finally launch the deposit certificates initially announced for early this fall and therefore ease up the shortage of instruments the market is now facing. ZF