The state borrowed more than EUR 1 bn from banks in August

0

Get real time updates directly on you device, subscribe now.

The loans taken out by the Ministry of Public Finance (MFP) from banks in August totaled RON 4.864 billion, by RON 429 million (9.67 percent) over the amount initially planned, agerpres.ro informs.

The ministry has planned loans of RON 4.435 billion for this month from commercial banks, of which RON 4 billion through eight auctions of treasury bills and government bonds and RON 435 million through additional sessions of uncompetitive offers, related to bond auctions. But in three bond auctions, MFP has drawn higher amounts than initially planned.

The amounts borrowed are to refinance the public debt and finance the state budget deficit.

In 2016, the total volume of loans to be launched by MFP on domestic market by issuing state bonds is determined by the planned budget deficit level of 2.8 percent of GDP (about RON 21 billion), which is to be financed by 50 percent from the domestic market and 50 percent from the foreign markets, as well as the refinancing level of RON/EUR denominated bonds maturing in 2016, worth about RON 38 billion, of which nearly RON 31 billion related to RON- denominated bonds and RON 7 billion representing EUR-denominated bond issue.

The Ministry of Finance is also considering drawing financial resources from the foreign markets amounting at EUR 4.5 billion.

 

 

DONATE: Support our work
In an ever changing and challenging world, the media is constantly struggling to resist. Romania Journal makes no exception. We’ve been informing you, our readers, for almost 10 years, as extensively as we can, but, as we reject any state funding and private advertising is scarce, we need your help to keep on going.
So, if you enjoy our work, you can contribute to endorse the Romania Journal team. Any amount is welcome, no strings attached. Choose to join with one of the following options:
Donate with PayPal
Donate by Bank Wire
Black Zonure SRL
UniCredit Bank. Swift: BACXROBU
RON: RO84 BACX 0000 0022 3589 1000
EURO: RO57 BACX 0000 0022 3589 1001
USD: RO30 BACX 0000 0022 3589 1002

Leave A Reply

Your email address will not be published.