“Considering the significant turmoil in the financial markets, which have led to sharp declines in yields both locally and in the region, the Finance Ministry has decided to reschedule today’s auction,” the ministry said in a statement Monday.
The ministry had hoped to sell debt worth 1.2 billion lei (EUR267 million) at today’s tender. At the previous similar auction January 23, the ministry sold RON1 billion of one-year paper at record low yield of 2.03% a year.
“If the unfavorable conditions persist, the ministry may reschedule more auctions in the future,” the statement noted.
The ministry plans to sell debt in local currency worth RON4.06 billion in February. Also this month, the institution hopes to raise at least EUR200 million at a five-year Eurobond sale on February 20.
So far in 2014, Romania sold RON4.86 billion in leu-denominated notes and EUR278.7 million at a euro-denominated auction on the local market. The ministry also tapped international markets for $2 billion at a two-part US dollar bond issue in January. (EUR1=RON4.4935)