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The ministry of finances placed bonds of 500 million in seven years
The ministry of finances placed on Monday bonds worth 500 million lei (109.4 million euro) with maturity on 29 April 2024 for a bid for benchmark bonds in line with the value programmed, for an average yield of 3.37% per year, up by comparison to the last bid, for the same maturity, show the data published by BNR.
The bid on Monday was the ninth in the issue for this maturity and had an announced value of 500 million lei.
On 19-20 June for the previous emission of bonds with maturity in April 2024 the ministry of finances borrowed 686.67 million lei with the supplementary session for an average yield of 3.22% and a maximum one 3.23%.
For the new bid, the banks got an average annual yield 3.37% and the maximum yield accepted by the state was 3.39%.
The demand of the banks was 856.13 billion lei with 71.2% more than the announced value of the bid.
The bonds issued by the state have a yield of the bond of 3.25%.
The ministry of finances proposed for July to borrow from the domestic market 5.1 billion lei out of which 1.7 billion lei through treasury bonds and 3.4 billion lei through bonds, plus 510 million lei through supplementary bids, the level being under that of June.
In 2017, the need for financing of the state is growing up, 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 overestimate by the government of the budgetary income and the GDP value.