Ministry of Finance borrows more than EUR 57 mn from commercial banks

Government securities have a one-year maturity (November 28, 2012) and the average yield of the adjudicated issue is 6.65 percent. The weighted average discount rate was 6.23 percent.

The total value of the issue was 700 million lei, while total demand from the 12 banks that participated in the auction was 1.198 billion lei. MFP rejected bids submitted by banks that have exceeded the required profitability level of 6.65 percent.

In the first 10 months of 2011, the Ministry has borrowed from banks about 42 billion lei, and in 2010 it borrowed on the domestic market over 41 billion lei.

Planned budget deficit for 2011 and agreed in the framework of the financial package with the IMF and the European Union is 23.953 billion lei.