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The ministry of finances took from the banks 90 million lei for five years in a supplementary bid
The ministry of finances sold on Friday state bonds worth 90 million lei matury on 8 March 2022 in a supplementary bid to that on Thursday when they borrowed 600 million lei (132.8 million euro) with interest going down, show the data published on Thursday by the BNR.
Following the supplementary bid on Friday, the cumulated value of the bid was of 690 million lei.
The bid is the second in a new emission of benchmark bonds.
The demand was solid. On Friday, the seven banks which took part to the bid offered 445 million lei, after the offer reached 1.2billion lei on Thursday, twice more than the sum required by the state.
The bonds issued by the state had a rate of 3.4%. Following the bid, the maximum yield offered by the state was 2.79% and the average one 2.77% per year, according to the BNR data.
At the previous bid for the same maturity of 6 March, the ministry of finances sold state bonds worth 600 million lei (132.5 million euro) for an annual yield of 3%.
The ministry of finances proposed for April 2017 to borrow from the domestic market 3.9 billion lei, to which they add 470 million lei through supplementary bids.
In 2017, the need for financing of the state is increasing, as the government proposed 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 over 3% of GDP in 2017, due to the over estimation by the government of the budgetary income and the value of the GDP.