The Romanian Government will sell starting March 17 bonds denominated in local currency and euros with tenants of up to three years for local currency and up to two years for euros, under a new edition of the Fidelis scheme that includes the listing of the bonds at Bucharest Exchange (BVB).

This time, the Government increased the yields (not subject to income tax) to 4.75% (one-year tenant) and 5.5% (three-year tenant) for the local currency-denominated bonds and 1.2% (one-year tenant) and 1.6% (two-year tenant) for the euro-denominated bonds, Profit.ro reported.

The coupons promised by the Government are thus significantly higher compared to those paid under past similar issues.

The National Bank of Romania (BNR) projects 4.0% consumer price inflation over the next 12 months starting end of March 2022, but the independent analysts expect the consumer prices to increase slightly faster.

The inflation in the euro area was forecast (in February) to increase from 2.6% in 2021 to 3.5% in 2022, before declining to 1.7% in 2023, but persistently higher energy prices may prompt upward revision of the inflation trajectory in the case of the euro area as well.

"The Fidelis government bonds are a safe investment that allows Romanians to save and receive the best interest rates on the market for euros. The government securities denominated in RON and EUR are accessible to resident and non-resident individuals, ensuring the recovery of investment and interest income for investors throughout the European Union," said minister of finance Adrian Caciu.

(Photo: Octav Ganea/ Inquam Photos)

andrei@romania-insider.com