The Ministry of Public Finance (MFP) borrowed RON 1 billion from banks on Thursday, through an issue of benchmark bonds with a residual maturity of 54 months, at an average yield. of 4.10 per cent per year, according to data released by the National Bank of Romania (BNR).The nominal value of the Thursday issue was RON 800 million, and the banks subscribed over RON 3.6 billion.
On Friday, an additional tender is scheduled in which the state wants to attract another RON 120 million at the return set on Thursday.
Also, the MFP rejected all the offers of the banks submitted in the tender for 12-month discount treasury certificates, by which it intended to attract RON 500 million.
The banks participating in the auction submitted offers totaling RON 313 million.
The Ministry of Public Finance (MFP) planned, in December 2019, loans from commercial banks of RON 5.945 billion, of which RON 1 billion through two an issue of discounted treasury certificates and 4.3 billion lei through eight issues of state bonds, to which the amount of 645 million lei can be added through additional sessions of non-competitive offers, related to bond auctions.
The amount is higher by about RON 1.84 billion compared to the one scheduled for November and will be used to refinance public debt and to finance the state budget deficit.