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Nov 06, 2009 15:11 EEST
November 6 (SeeNews) - Romania on Friday sold 793.8 million euro ($1.18 billion) in three-year Treasury notes at uniform price on the domestic market, above the 400 million euro on offer, at a 5.25% yield, the country's central bank, BNR, said.
Dealers placed bids for a total of 1.5 billion euro worth of government securities in the auction, BNR, which sells government securities on behalf of the Finance Ministry, said in a statement.
This is Romania's second auction of foreign currency-denominated securities this year. In August the country sold 447 million euro in four-year Treasury notes, above the 300 million euro on offer, at a 5.25% yield.
Romania has turned to the domestic market for funding as its nine-month budget deficit widened to 5.1% of the gross domestic product (GDP) projected for the current year, from 1.5% of GDP in the same period last year. The country's government collapsed in October following a no-confidence vote, and concerns over political instability have prompted investors to demand higher yields for lei-denominated securities.
The finance ministry rejected all bids at an auction for five-year treasury notes on Thursday as the yields asked by banks were too high.
Romania signed a 20 billion euro ($29.8 billion) aid deal with the IMF, the European Union and the World Bank in March to support its crisis-hit economy. An IMF mission wrapped up a two-week review of Romania's economic performances under the stand-by agreement on Friday, saying it will delay the third loan tranche under the agreement until political situation stabilises.
The country's finance ministry said earlier this week it planned to issue 6.0 billion lei ($2.07 billion/1.4 billion euro) worth of government securities in November to finance and re-finance public debt.
Romania has sold 51.795 billion lei in government debt paper so far this year. It sold government securities worth nearly 12 billion lei last year, up from 8.7 billion lei in 2007.
(1 euro=4.3051 Romanian lei)
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