Romania does not allow foreign investors to access the market of Treasury bills issued in RON yet, despite the public perception that the deregulation has actually taken effect as of January 1st, 2006, and will probably not do so any sooner than March.
Legally, the opening of the market to non-residents cannot be done until Parliament has enacted the law draft on modifying Ordinance 66/1997 on the regime of foreign investments in Treasury bills.
Enacted by the Government as late as November 3rd, the draft passed through the Senate on December 8th and got stuck in the Chamber of Deputies, where the Permanent Bureau did not agree to have it debated in an emergency procedure as suggested by the Government.
Under the circumstances, the document is now waiting its turn in the Budget-Finance Committee of the Chamber of Deputies.
Amendments can be submitted until February 9th, while the deadline for the passing of the report is February 15th. Meanwhile, there are also the consents of the Economic Policy Committee and of the Juridical Committee that need to be secured, with debate by the plenum and promulgation coming next.
Therefore, the liberalisation of the non-residents” access to the Treasury bills market may not happen any sooner than March 1st, 2006.
The Finance Ministry scheduled the first T-bill auction for February 13th, precisely because it realised there would be a delay. However, it is already obvious the non-residents will have to sit this one out and wait until March 13th, when the second treasury certificate issue is scheduled.
The first public bond auction is scheduled for as late as April 6th.
Once the law comes into force, non-resident individuals and legal entities will be allowed to buy Treasury bills in RON through primary dealers and the brokers of the secondary market. razvan.voican@zf.ro