On Tuesday, the Ministry of Finance sold 502 million kuna in treasury bills at auction, exceeding the plan, while the interest rate remained low at 0.09 percent.
Ahead of the maturity of 409 million kuna in treasury bills, the Ministry offered 400 million kuna worth of treasury bills for subscription. Financial institutions submitted bids totaling 502 million kuna, all of which were accepted by the Ministry.
>>>Ministry of Finance Issues Nearly 1.12 Billion Kuna in New Treasury Bills
The treasury bills were issued with a maturity of one year, at an average interest rate of just 0.09 percent. The interest rate has remained the same as in the previous seven auctions.
With a substantial excess of kuna liquidity of nearly 26.5 billion kuna or 7.3 percent of GDP and favorable fiscal indicators, analysts are not surprised by such a low interest rate.
>>>MINFIN Sold 1.5 Billion Kuna in Treasury Bills at an Interest Rate of 0.09 Percent
With the maturity of 409 million kuna in treasury bills, the balance of registered treasury bills increases by 93 million, to 19.44 billion kuna.
The next auction will be held on May 22 via the Bloomberg Auction System (BAS).
