Ministry of Finance planning to borrow 5.125 billion lei in June 2021

The Ministry of Finance planned, in June 2021, loans from commercial banks of 4.6 billion lei, of which 1.1 billion lei through two issues of discounted treasury certificates and 3.5 billion lei through seven issues of government bonds, agerpres reports.

To these can be added the amount of 525 million lei through additional sessions of non-competitive bids related to bond auctions.

"In order to finance the state budget deficit and refinance the public debt, the prospectuses for issuing discounted treasury certificates and benchmark government bonds are approved in June 2021, with a total nominal value of 4,600 million lei, to which may be added the amount of RON 525 million from the allocations of the additional sessions of non-competitive bids organized exclusively for the benchmark instruments, provided for in Annexes No. 1 and 2, which are an integral part of the present order. The General Directorate for Treasury and Public Debt will carry out the provisions of this order," stipulates the document published in the Official Journal.

The total amount, of 5.125 billion lei, is by 415 million lei higher than the one scheduled in May 2021 (4.71 billion lei) and will be intended for the refinancing of the public debt and the financing of the state budget deficit.

According to the prospectus, the Finance Ministry scheduled on June 7 the first issue of discounted certificates, amounting to 300 million lei, with the maturity date on January 10, 2022, and the second on June 24, amounting to 800 million lei, the due date being June 27, 2022.

Also, during the month, seven benchmark bond issues will be launched, with a total value of 3.5 billion lei, followed the next day by an additional session of non-competitive bids, with a value of 15% of the initial value of the bond issue (525 million lei in total).

The issues will amount to 600 million lei (five issues), 300 million lei (one issue) and 200 million lei (one issue).