Finance Ministry borrows 500 mln lei from banks, Monday

The Ministry of Public Finance (MFP) borrowed, on Monday, 500 million lei from banks, through a benchmark government bond issue, with a residual maturity of 88 months, at an average yield of 3.34% per year, according to data transmitted by the National Bank of Romania (BNR).

The nominal value of Monday's issue was 500 million lei, and the banks subscribed 765.4 million lei.

An additional tender is scheduled for Tuesday, by which the state wants to attract another 75 million lei at the yield set on Monday for bonds.

The Ministry of Public Finance planned, in October 2020, loans from commercial banks of 4.4 billion lei through benchmark state issues, to which can be added the amount of 660 million lei through additional sessions of non-competitive offers, related to bond tenders.

The total amount, of 5.06 billion lei, is 500 million lei higher than the one scheduled in September and will be destined for the refinancing of the public debt and the financing of the state budget deficit.