Finance Ministry raises 1.4 bln lei from banks

The Public Finance Ministry raised on Thursday 1.4 billion lei from banks, through two government bond issues, the National Bank of Romania announced.

Thus, the Ministry raised 1.026 billion lei through a 59-month bond issue at an average yield of 3.29 ppa, and another 400 million lei through an issue of 12-month discount T-bills, at a yield of 2.60 ppa.

An additional auction is scheduled for Friday for another 120 million lei raised at the yield set on Thursday.

The Public Finance Ministry intends to borrow this September 4.54 bln lei from banks - of which 400 ml lei through an issue of discount T-bills, and 3.5 bln lei through eight issues of government bonds. Another 540 ml lei could add to this amount through additional non-competitive bids related to the security auctions.

The raised amounts will be used to refinance the public debt and the state budget deficit.