18.3 C
Bucharest
June 21, 2021
ECONOMY FINANCE&BANKING

Finance Ministry draws 500 mln lei from banks, at average yield of 3.80% per year

The Ministry of Public Finance (MFP) borrowed 500 million lei from banks on Thursday, through a 50-month state bond issue, at an average yield of 3.80% per year.

The nominal value of the issue was 500 million lei, but the banks over-subscribed the offer, up to 810 million lei.

The Ministry of Public Finance has planned loans from commercial banks of 4.4 billion lei in January 2018, out of which 3.6 billion lei through state bonds tenders and 800 million lei through an issue of discounted treasury certificates. Adding to these loans could be 540 million lei through additional sessions of uncompetitive bids, related to the bond tenders.

According to the MFP, the amounts will be used to refinance public debt and finance the state budget deficit.

In 2018, the MFP will borrow some 48 – 50 billion lei from the domestic market, similarly to the level proposed for 2017, whilst about 4.5 – 5 billion euros will be drawn from the foreign markets, on the rise compared to 2017, according to the 2018 Indicative Programme of State Bond Issues.

Related posts

Various Brands expands its network with another store, in Focsani Mall

Gabriela Bogdan

US ambassador at inauguration of 60-ml dollar investment: A good example of Romania’s potential

Nine O' Clock

Macroeconomic confidence index drops 2.1 points in October in CFA report

NINE O'CLOCK