Monday, January 4, 2010

Romania plans to sell debt worth 4 bln lei in Jan

BUCHAREST, Jan 4 (Reuters) - Romania plans to issue treasuries worth 4 billion lei ($1.35 billion) in January, compared to the 4.94 billion lei it sold in the previous month, central bank data showed on Monday. 

The ministry struggled with issuance plans last year as prolonged economic and political crises put upward pressure on yields and stalled foreign aid, but analysts said yields could fall in early 2010 as political turmoil comes to an end.

The finance ministry plans to sell 10-12 billion lei in local currency bills and bonds in the first quarter. It will not disclose a full issuance figure for 2010.

The ministry will also not exceed a 10 percent yield for leu debt, which is well above government borrowing levels seen in the euro zone or Romania's better-off regional peers.
Analysts have said they expected yields to lower in February, once parliament passes a cost-cutting 2010 budget bill and the IMF resumes a 20 billion euros aid package.

The ministry sold 64.6 billion lei in last year, five times more than in 2008, as the government struggled to plug a yawning budget deficit targeted at 7.3 percent of gross domestic product.

In January, the ministry plans to sell 500 million lei each in three- and five- year treasury bonds, and 3 billion lei in six-month and one-year paper.

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