Finance Ministry tests longer maturities

The Romanian financial market will see a five-year fixed interest instrument available as of this year, even though it will not be ready to use it at first. At the same time, the Finance Ministry intends to introduce a clear monthly schedule of government securities issues by types of maturities as of September, which should improve predictability and make it easier for investors to plan their moves, Enache Jiru, head of the Treasury, promises. “We will determinedly maintain our strategy to increase the maturity of the instruments issued, and at the same time attempt to ensure liquidity for them,” Jiru explains. He says he is not as concerned about the liquidity of the instruments, which remains low, especially for the maturities longer than one year, as he is about them being an investment alternative on a free market. “The great interest in shorter maturities is a matter of investors’ choice that see them as paying off better, to the disadvantage of the two or three-year maturities, but this will pass,” the Treasury head says. ZF