Yields offered by Finance Ministry could exceed 13%

The Economy and Finance Ministry is now paying 13% yields for T-bills and analysts say that the state will borrow more and have to agree to higher yields over the last few months of the year in order to finance the budgetary deficit. “We expected the Ministry to try to borrow as much as possible from the primary market and the yield may exceed 13%,” believes Melania Hancila, BCR analyst. Catalina Constantinescu, senior economist of RBS Bank Romania in turn says that the high financing needs of the Finance Ministry will make the state agree to very high yields compared with two months ago. The Ministry of Economy and Finance had T-bill issues worth 3 billion euros scheduled for October, which is almost half of the total amount estimates for the final quarter of this year.