SLOVAKIA borrowed €191 million on financial markets on June 16. As has become tradition recently, the Finance Ministry Debt and Liquidity Management Agency (ARDAL) offered investors bonds in two auctions, the SITA newswire reported.

This time securities were auctioned maturing in November 2024 and in November 2018. Bonds with longer maturity were sold for €154 million, with securities for €64 million ending up in the hands of foreign investors.

Overall demand however was twice as high, reaching €365 million. The average interest accepted in this auction stood at 2.0447 percent p.a., while investors asked for 2.0906 percent p.a. on average.

In the second auction of bonds maturing in late 2018, ARDAL accepted bids at the level of €37 million. Of this sum, securities for €17 million went to foreign investors.

Overall demand in this auction considerably exceeded the accepted level, too, when it reached almost €191 million. The state ultimately accepted the sale of bonds at the average interest rate of 0.6910 percent p.a. while the average rate demanded by investors represented 0.7618 percent p.a.

Finance Minster Peter Kažimír sees the June 16 auction as a another big success. He is satisfied in particular with the price. He says that the 4.5-year bond had record low interest.

"Our country has not yet borrowed so cheaply," he said, as quoted by SITA. The low price of debt financing is also the result of the positive economic development when the revival of economic growth and improvement in the labour market are expected, said the minister.

Source: SITA

Compiled by Michaela Terenzani from press reports.
The Slovak Spectator cannot vouch for the accuracy of the information
presented in its Flash News postings.