Finance Ministry borrows 400 million lei off banks

The Ministry of Public Finance (MFP) borrowed, on Thursday, 400 million lei off banks in a benchmark government bond issue of a residual maturity of 38 months, at an average yield of 3.38% per annum, according to data released by the National Bank of Romania (BNR).

The nominal value of Thursday's issue was 400 million lei, and the banks subscribed 887.1 million lei.

An additional auction is scheduled for friday, where the government wants to raise another 60 million lei at the yield set on Thursday for bonds.

The Ministry of Public Finance (MFP) has planned to borrow 3.45 billion lei off commercial banks in August 2020, of which 3 billion lei in eight issues of government bonds, adding to which will be 450 million lei in additional sessions of non-competitive bids related to bond auctions.

The amount, lower than the 5.3 billion lei scheduled for July, will be used to refinance public debt and finance the general government deficit.