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

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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, 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.



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