English
Andreea Arăboaei
The Finance Ministry has decided to finance and re-finance the public debt by issuing 6 billion RON in bonds next month. Over 83% of the sum will be borrowed through discount bonds, while the rest rest through benchmark bonds.
The discount bonds are debt securities issued without coupons (also referred to as zero-coupon bonds) usually for short periods of time, of up to one year. The buyer purchases the bond below par (the discount) and collects the full face value upon maturity. The difference between the purchase value and the returned par value is the interest, which is fixed irrespective of the changes on the monetary market.
The benchmark bonds are issued for longer periods of time. The interest (the coupon) is defined in the prospectus before the issuance and is paid annually on predefined dates.
Both discount bonds and benchmark bonds are sold at auction and can be bought by prime dealers, who are able to bid on their own behalf, as well as on their customers" behalf.
The Finance Ministry borrowed over 20.2 billion RON in the first three months of the year to finance or re-finance the public debt. The Government"s budget deficit target for this year is 4.6% of the GDP (24.3 billion RON). Following the closure of the agreement with the International Monetary Fund, Romania must comply with quarterly budget deficit targets as follows: 14.5 billion RON at the end of Q2 and 18.6 billion RON at the end of Q3.
Euro
Dolar SUA
Franc elveţian
Liră sterlină
Gram de aur
