The task of borrowing from banks will get harder for the Ministry of Finance, ING economists say, stressing that the bank has no other alternative than to accept the bids at higher yields.

“The results of yesterday’s one-year T-bill auction looked worse than anticipated. The Ministry of Finance issued 0.35 billuion-worth papers versus 1.2 billion announced at yields up to 6.98%.

The report highlights that this is worrying and underscores the need to pay higher funding costs going further, but strays from the finance minister’s desire to see a stabilization in yields.

Attempting to push yields higher, the Finance Minister has managed to take about 1 billion lei from the market this month, versus the 4.6 billion lei it planned.