The Ministry of Public Finance (MFP) borrowed RON 990.1 million from banks on Monday through a benchmark government bond issue with a residual maturity of 60 months at an average yield of 4.29% per annum, the National Bank of Romania (BNR) informs.
The nominal value of the issue on Monday was RON 600 million and the banks subscribed more than RON 1.682 billion.
An additional auction is scheduled on Tuesday, as the state wants to attract RON 90 million more at the same the yield on Monday.
The Ministry of Public Finance has planned in June 2019 to borrow from commercial banks RON 4.425 billion, of which RON 400 million through an issue of discount treasury certificates and RON 3.5 billion through new issues or by reopening of government bonds, to which the amount of RON 525 million may be added through additional uncompetitive tender sessions related to bond auctions.
As compared to May, the loans programmed by MFP in May are higher by RON 345 million, i.e. by 8.5% respectively. The amounts will be used to refinance the public debt and to finance the state budget deficit.