Most analysts surveyed by Economica.net net expect the refinancing rate at 7% by the end of the year (from 6.25% currently) and the interest paid by the Government on the benchmark 10-year bonds issued on the local market at over 10%.

The interest rate hike by another 0.75pp will contribute to a further increase of the interest on the money market (ROBOR), which could reach the level of 9% at the end of the year.

The Treasury still has RON 19.4 bln to repay this year, and, in order to be able to borrow, it already had to push up yields for the 10-year bonds to 9.22%.

Analysts believe that by the end of the year, the cost of public borrowing may enter the double-digit region.

andrei@romania-insider.com

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