It is for sure now. The Finance Ministry has completely rallied to the interest increase trend – at least when it comes to short maturities, set by the central bank in the last few months.
The interest the Finance Ministry is paying to the individuals buying treasury certificates as of this month will go up by one percentage point, following the lead of the securities aimed at commercial banks, whose interests rose by 1.6-1.7%.
At the same time, it is also following the lead of the interests paid for banking deposits, which have resumed an upward trend over the last few months.
The 180-day certificates will bear 15.5% annual interest, one percentage point more than the previous issue, while the 90-day issue will see interest upped to 15%.
This increase in the interests paid on the securities sold to individuals is the first operated since May and comes at a time when the Finance Ministry is still resisting requests for higher interests. All the more so since the Treasury is in a good position, which does not justify accepting high interest loans at the moment, its officials feel.
Meanwhile, the Finance Ministry relies on an increase in the number of legal entities (insurance companies and investment funds mainly) buying government securities, which would help alleviate the pressure of the banks still accused of having only their annual financials in mind.
The policies to offer higher interests than those on banking deposits have enabled the government securities issued by the Finance Ministry for individuals to be “unfair competition” for the traditional banking deposits for a long while.
The zero risk, the lack of redemption fees and the higher interests offered at times had made the deposit certificates the number one choice for people to keep their savings. It all ended this spring, when interests hit bottom.
After having stood out by its refusal to admit it had rushed to operate too sharp a cut in interests too fast this spring, the Finance Ministry has finally realised it is “out of the market”. The increases this month seem to confirm the Ministry wants to get in the game. oana.nuta@zf.ro