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March 3, 2021

16 banks borrowed RON 10 bln offered by BNR through repo

A number of 16 banks have borrowed the sum of RON 10 bln offered by the National Bank of Romania (BNR) through a repo operation, the offers filed by the banks being three times higher (RON 29.86 bln). BNR uses repo operations to offer liquidity to commercial banks in exchange for state bonds, at a monetary policy interest rate of 5.25 per year. The money are loaned for a week’s time, Mediafax informs.
When the repo tender’s sum is limited the money is offered pro-rate, in relation to an indicator obtained by dividing the sums subscribed and the value presented by the Central Bank. Thus, when BNR announces a ceiling the banks bid higher values in order to make sure they receive more than the sums aimed for.
The Central Bank hiked yesterday to RON 10 bln the sum with which it loans banks through repo operations, up from the RON 9 bln ceiling established last week.
Last week 13 banks borrowed RON 8.989 bln (EUR 2.049 bln) from the Central Bank, their offers totaling RON 23.167 bln. At the end of January the Central Bank raised to RON 9 bln the ceiling for repo operations, up from the RON 4-6 bln level registered from October 8 to January 21.

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