Lead managers selected

France's BNP Paribas and Germany's bank Dresdner Kleinwort Wasserstein have been chosen the lead managers of the Lithuanian government's planned 10-year Eurobond issue worth 400 million euros (1.38 million litas).

Some 16 out of 18 foreign financial institutions that had been sent invitations for the placement qualified for the lead manager's position, the Finance Ministry reported.

"An active participation in the selection process shows the trust of financial market participants in the stability of the Lithuanian financial system, and their belief that the new issue will be placed successfully," said a ministry offical.

The ministry plans to launch the new Eurobond issue in late February of this year. Proceeds will be used to redeem previous Eurobond issues, refinance earlier debt and cover the budget deficit.