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The ministry of finances borrowed 500 million lei for two years, with a dropping interest of 1.36% per year
The ministry of finances placed a state bond of 500 million lei( 109.6 million euro) with maturity on 25 February 2019 with an average yield at 1.36% per year, show the data published by the BNR.
The banks which took part in the bid offered 1.42 billion lei, of almost three times over the announced value.
The medium average yield obtained by the banks was 1.36% per year, and the maximum – 1.36% as well.
On 24-25 April, at the previous bid for the same maturity, the ministry of finances sold bonds of 920 million lei, at an average yield of 1.48% per year, and a maximum yield of 1.49%.
The bonds issued by the state have a rate of the bond of 1.35%.
The ministry of finances proposed for May to borrow from the domestic market 3.7 billion lei, out of which 1 billion lei through treasury certificates, and 2.7 billion lei through bonds emissions, plus the 405 million lei through supplementary bids.
In 2017, the need to finance of the state is growing, as the government estimated a budgetary deficit of 2.99% of GDP against the level of 2.41% of GDP reached in 2016.
The European Commission and many analysts expect a budgetary deficit of over 3% of GDP in 2017, due to the overestimation by the government of the budgetary income and the GDP value.