The National Bank of Romania (BNR) lent RON 4 bln to 13 banks via a repo operation Monday, with demand being more than five times higher, up to RON 20.29 bln, reports Mediafax. Repo auctions are a means for the BNR to offer liquidity to commercial banks in exchange for state bonds at the key interest of 5.25 pc a year. The amounts are borrowed for a period of one week. The number of participants dropped from last week, when 17 banks used this form of borrowing, the demand being over sevenfold higher, RON 29.45 bln, close to the record-high registered three weeks ago. Ministry of Public Finance (MFP) borrowed RON 500 M through one year certificates, exactly as it proposed, at an average yield of 6.33 pc, slightly higher than that paid early by 6.29 pc.
