At the similar bid on August 24, MFP rejected all the offers for treasury certificates maturing in a year, considering the yield demanded by banks unacceptable. It drew 1.199 billion lei at the bid on August 10, for which it pays an average annual yield of 10.42 percent.
The Finance Ministry plans to draw 6 billion lei in September through treasury certificates maturing in six and 12 months and benchmark bonds with three and five-year maturity, after it issued state securities of more than 51.2 billion lei in the first eight months.
Romania's budget deficit widened in the first seven months to 3.5 percent of the gross domestic product (GDP) estimated at 497.3 billion lei.
The International Monetary Fund (IMF) revised the target agreed with the Romanian authorities on the budget deficit at 7.3 percent of the GDP this year, versus 4.6 percent as previously established. Moreover, the Fund will allot about 1.75 billion euros from the second installment of the loan granted to Romania to cover the budget gap.
