The Treasury managed to borrow 1.2 billion RON yesterday by selling six-month T-bills at a 6.99% interest, more than it had planned, after a long period during which bankers hesitated to finance the state at such low costs.
The success comes at a time when reports in the international
press say Hungary is now able to get funding under even better
terms after suspending its arrangement with the International
Monetary Fund and with the European Union.
On the other hand, Romania saw another around 900 million-euro
tranche approved for release at the end of July, as part of the 20
billion-euro arrangement concluded with the international
institutions. At the time when the loan was contracted in 2009, the
Romanian authorities said international supervision would give
credibility to Romania, enabling it to borrow from capital markets
at lower costs. Hungary’s experience, however, raises doubts over
the validity of these arguments.
“It is good for Romania to pursue its arrangement with the IMF. We
could also borrow (from private markets, in the absence of the
arrangement i.e.), but at higher costs,” says Lucian Croitoru,
advisor of NBR governor Mugur Isărescu.