Finance Ministry borrows 715.5 mln lei from banks on Monday

The Ministry of Public Finance (MFP) borrowed 715.5 million lei from banks on Monday, through a 75-month government benchmark bonds issue, at an average yield of 4.04 pct per annum, according to data sent by the National Bank of Romania (BNR). 

The nominal value of Monday's issue was 600 million lei, and the banks underwrote the offer, up to 1.026 billion lei. 

An additional tender is scheduled for Tuesday, whereby the state wants to attract another 90 million lei at the yield set on Monday. 

The Ministry of Public Finance (MFP) has planned, in January 2020, loans from commercial banks amounting to 4.4 billion lei, of which 300 million lei through the issue of discounted treasury certificates and 4.1 billion lei through seven issues of state bonds, to which the amount of 615 million lei can be added through additional sessions of non-competitive offers, related to state bond tenders. 

The amount is by 930 million lei lower compared to the one scheduled for December last year and will be used to refinance public debt and finance the state budget deficit.