Tuesday, June 15, 2010

CORRECTED-Romania finmin not desperate to sell debt - press

BUCHAREST, June 14 (Reuters) - Romania can afford to reject bids at debt tenders if yields asked by investors are too high, Finance Minister Sebastian Vladescu was quoted as saying ahead of a T-bill auction on Monday. 

Uncertainty over Romania's ability to enforce austerity measures, vital to keep a 20 billion euro aid deal led by the International Monetary Fund afloat, has pushed yields higher in recent weeks and the ministry has rejected bids at four tenders since May 6.

"Our decision to reject the offers at several successive auctions was triggered by pretty heavy pressure (on yields) from banks," Vladescu told local financial daily Ziarul Financiar.
"We're not that desperate, we still have money in the treasury so we are fighting the banks."
The ministry tenders 1 billion lei ($285.3 million) worth of six-month treasury bills later on Monday, one day before a government no confidence vote.

Vladescu said that whether the IMF board meets to decide the disbursement of its next loan tranche to Romania on June 28 or two weeks later "was not that important" because the country was not in "such a vulnerable position".

No comments: