There are differences between prices primary dealers ask for T-bills and the ones that can be accepted by the Finance Ministry, but we are trying to stick to the initially-announced issue calendar, believes Stefan Nanu, general manager of the Treasury.

"There's a problem about reaching a consensus about reasonable yields. Lately, we've agreed to borrow from the domestic market at costs that were probably unjustified in terms of inflation targets, but a policy of adaptation to the market is necessary. Some principles cannot be relinquished. No Treasury of a developed country freezes T-bills issues when the market moves up or down," stated Nanu.

He considers yields of 10.5%-10.75% for T-bills are high enough against an NBR interest rate of 9.75%, given that they also carry a sovereign risk.

Nanu considers the Treasury is considering reassessing possibilities to restructure the foreign debt portfolio in the context where there is a high number of contracts in progress, more than half of this debt is contracted at variable interest rates and just a quarter is tradable.

He maintains an element of inefficiency is related to the high number of contracts in progress. At the same time, another vulnerable element is the fact that a large part of the debt (60%) is contracted at variable interest rates. On the other hand, he explains that should a large part of debt be contracted at fixed interest rates, there would not be a competitive edge.

The Treasury's basic goals are reducing foreign exchange risks, developing the T-bills market and raising the yield curb, but also getting some cost advantages.

Nanu says since 2000 the Treasury has coped with a problem of financing policy inconstancy and with high fluctuations in the volume of T-bill issues.

"This year, issues were normal, but at the lower limit, as the level of costs was very high