The Ministry of Finance borrowed, on Monday, 500 million RON from banks, through an issue of benchmark government bonds, with a residual maturity of 46 months, at an yield rate of 6.42 ppa, according to data published by the National Bank of Romania (BNR).

The nominal value of the issue was 500 million RON, and the banks submitted offers worth 710 million RON.

An additional auction is scheduled for Tuesday, through which the state wants to attract 75 million RON at the yield set on Monday for the bonds.

The Ministry of Finance also rejected all the bids received from banks in the auction of benchmark government bonds with a residual maturity of 164 months, through which it intended to attract 300 million RON, deeming the tender price at an unacceptable level.

The banks participating in the auction submitted bids totalling 302.4 million RON.

The Ministry of Finance has planned, in June 2024, loans from commercial banks in the amount of 6.2 billion RON, to which the amount of 750 million RON can be added through additional sessions of non-competitive bids related to bond auctions.

The total amount, of 6.95 billion RON, is 1.06 billion RON higher than the one that was scheduled in May 2024, of 5.89 billion RON, and will be used to refinance public debt and finance the state budget deficit.

AGERPRES