Treasury finally successful in borrowing cheaper as year draws to a close

The state paid less for the money borrowed in the last few weeks, with banks accepting lower yields given the surplus short-term cash on their hands, despite having asked for higher interests in the summer using the sovereign risk as an argument.
“The drop in the government securities yields is a natural development, because of the surplus short-term cash available and we can also notice the country’s long-term outlook settling,” says Dorin Badea, head of UniCredit Țiriac Bank’s Treasury.
The latest auctions organised by the Finance Ministry were oversubscribed by far, with the banks’ appetite to lend money to the state returning as interbank interests fell, driven down by NBR’s policy to leave more money onto the market.