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The minister of finances rejected again the banks offers due to high interest

The minister of finances recorded on Monday the second failure in a row for the bids for state bonds, rejecting all the offers coming from the banks with maturity on 29 April 2024 as the sums offered were under the value of the bid and the interests were considered too high, show the data published by the BNR.

The bid had announced value of 300 million lei and the financing offer of the banks was weak, only 288 million lei.

The minister of public finances rejects the offers as they were considered at an unacceptable level of the price offered’ the BNR press release says.

The failure was anticipated by the analysts, who estimated a weak demand.

This is not the most liquid bond and as there are domestic uncertainties and foreign as well,the demand could be weak; moreover, taking into consideration that MF could decide not to pay higher yields  required on the market ( as we have seen recently) it is possible that we have a bid with partial allocation or a failed one’ the  ING Bank report shows, published on Monday morning.