The Finance Ministry rejects all offers for six-month state securities
Romania's Public Finance Ministry (MFP) rejected banks' offers to issue state securities maturing in six months, considering the level of yields unacceptable, according to data of the central lender.
The announced value of the bid was of 1.1 billion lei. Banks' offers amounted to 1.46 billion lei.
At the similar bid on September 28, MFP sold state securities maturing in six months worth 1.049 billion lei, with 16.5 percent above the announced value, at an average annual yield of 9.97 percent.
MFP plans to draw 6 billion lei this month, after it collected state securities of 55.4 billion lei in the first nine months, up four-fold versus the whole 2008.
Romania's budget deficit widened in the first eight months to 22.3 billion lei, or 4.5 percent of the gross domestic product (GDP) estimated for the year, according to data published by the Finance Ministry.
The International Monetary Fund (IMF) revised the target agreed with the Romanian authorities on the budget deficit at 7.3 percent of the GDP this year, versus 4.6 percent as previously established.