The cited official said that in last period, the investors’ appetite has mainly targeted medium- maturity government stock.
On August 6, MFP rejected all buy bids of commercial banks for a five-year benchmark bond issue, reads data provided by the National Bank of Romania (BNR).
The government bond issue worth a total of 850 million lei (200 million euros) had the coupon set at 11 percent. MFP did not accept the banks’ required rate. The banks’ total bid was 1.783 billion lei (approximately 424 million euros).
According to Dragoi, the schedule of the government stock issues on the domestic market until the end of 2009 will be maintained regardless of the need for financing, and starting September, MFP will be ready to place on the foreign market euro-denominated four-year bonds with 5.25 percent coupon.
Should market conditions be adverse, the eurobond issue might be postponed to early 2010.