Finance Ministry fails to get loans, commercial banks show low interest in state bonds. Consequence of GEO on ‘tax greed’?

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The Finance Ministry has tried to get loans on Monday amounting to RON 400 million from commercial banks on the domestic market. The 7 primary dealers submitted several offers of about 30% of the demanded amount, but the ministry turned them down.

Since the beginning of the year, the Finance Ministry is trying to get loans, but the offers do not meet the demand. According to hotnews.ro this is one of the consequences of the ‘ordinance on greed’ 114. If such developments continue, the authorities could go on external markets, depending on the financing costs, given the conditions set by the new ordinance.

Since the beginning of the year 13 auctions have taken place and banks showed interest in only one offer of state bonds, the one on January 17, due in 10 years.

The offer on Monday was due in 2031.

The Romanian state aims loans worth RON 3 billion this month.

According to BNR information, the seven primary dealers are: Banca Comercială Română (BCR), Banca Română pentru Dezvoltare – Groupe Société Générale S.A., Banca Transilvania S.A., Citibank Europe Plc. Dublin –Romania branch, ING Bank N.V. Amsterdam – Bucharest branch, Raiffeisen Bank S.A., UniCredit Bank S.A.

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