EURRON to 4.2 by end of March?

In recent years the Ministry of Finance has used the first quarter to borrow most its funding needs for the year. The signal was given by very low rates in the money market at short maturities. With low funding costs and still high real interest rates the demand for Romanian debt at maturities up to one year was strong from both local and foreigners. One collateral effect of this is a stronger RON in the first part of the year.

Romanian MoF should focus on lower expenditures…

..not on higher revenues

The new Minister of Finance, Bogdan Dragoi, presented yesterday his priorities for the length of his mandate. Here are the first three:

• The number one priority is to ensure a sustainable economic growth.
• Another priority is structural funds accession.
•  Until now the Ministry of Finance has focused on bringing sustainability to public expenditures but from now on we will focus on increasing public revenues.