Romania Sells 401.9 Mln Lei (105.7 Mln Euro) in 1-Yr T-Bills, Yields Rise

The average yield was 14.23%, up from 13.55% in the auction held on October 22, the BNR, which sells government securities on behalf of the Finance and Economy Ministry, said in a statement.

Bids were placed for 1.2 billion lei worth of T-bills in Wednesday's auction. The average accepted price was equal to 87.4187% of par.

The ministry said earlier it planned to issue 11 billion lei worth of government securities in 2008. It also said it would issue 7.0 billion lei worth of government securities in the fourth quarter alone, including 3.0 billion in November. In June it issued a 750 million euro ($974 million) 10-year eurobond to finance its budget deficit and to refinance a 600 million euro eurobond that matured the same month.

The central bank sold government securities worth some 8.7 billion lei in 2007 and another 10.4 billion lei so far this year.

Romania liberalised its capital market in 2006, giving foreign nationals free access to its government securities. The country joined the European Union in January last year.

(1 euro = 3.8037 Romanian lei)