Brokers said that the launch of state bonds on the local capital market is the event of the year in the field, as they are expected to attract more institutional investors. Investors will have to wait eight months for short-selling operations, market representatives indicated.
“Launching state bonds will bring more stability in their trading and, hopefully, lower costs. It will be to fund administrators’ advantage that state bonds are to be listed on the stock market. There is also a transparency gain, as the interbank market, where they were previously traded, was mainly based on negotiations,” according to asset management company Certinvest President, Eugen Voicu.
BVB officials did not provide details on the value of the bond issues. Since the beginning of 2008, the Finance Ministry has sold state bonds worth some €1.4 billion of the total €3 billion worth of bonds scheduled to be launched this year.
Yields for state bonds with one year maturity increased by up to 11 percent. Stock market officials said they are to provide further information on the bond issue as of next week. “State bonds will be launched in the coming period, but not starting Monday,” BVB President and General Manager Stere Farmache said. Finance Ministry officials initially said that the bonds were to be traded on BVB as of Monday.
