November 29 (SeeNews) - Romania's finance ministry is offering six issues of fixed-rate government securities denominated in lei and euro to individual investors without setting a target for the amount it wants to raise in the two-week subscription period starting December 5, it said on Tuesday.
The Tezaur government securities of 1 leu in par value each will be issued with maturities of 1 and 2 years and annual interest rates of 7.65% and 7.80%, respectively, the finance ministry said in a statement.
This compares to interest rates of 1% to 9% for one-year bank deposits and 5.4% to 9.6% for two-year deposits, according to data published by the biggest local banks.
Residents and non-residents can also invest in Fidelis state securities denominated in lei and euro, which are listed on the Bucharest Stock Exchange.
The Fidelis government securities of 100 lei in par value each will be issued with maturities of 1 and 3 years and annual interest rates of 7.65% and 8%. This compares to interest rates of 1% to 9% for one-year bank deposits and 6.5% to 9.8% for three-year deposits.
The Fidelis government securities of 100 euro ($104) in par value each will be issued with maturities of 1 and 2 years and annual interests of 2.70% and 3.70%. This compares to interest rates of 0.1% to 2.6% for one-year bank deposits in euro and 0.6% to 2% for two-year deposits in euro, data compiled from various banks indicated.
Coupon payments on the issues are due annually. The income from coupon payments is non-taxable in Romania.
The proceeds from the issuance of government securities will be used to finance the budget deficit and refinance public debt, the finance ministry said.
(1 euro=4.9184 lei)