SARAJEVO May 6 Bosnia's cash-strapped
autonomous Bosniak-Croat Federation on Tuesday raised 20 million
Bosnian marka ($14.3 million) at an auction of six-month
treasury bills, helping shore up its finances after the IMF
withheld a loan payment.
The average weighted yield fell to 0.74 percent from 0.81
percent at the last sale of six-month paper, held in April.
Investors bid for 47.4 million marka worth of T-bills against 20
million marka on offer, the finance ministry said.
The Federation had planned to issue 260 million marka worth
of T-bills and 50 million marka worth of bonds this year to help
cover its budget deficit, which it expects will come to 661
million marka due to loans it has extended for infrastructure
projects by public companies.
It had expected to plug the rest of the gap of 350 million
marka with funds from the International Monetary Fund and the
World Bank. But the IMF in February froze the disbursement of
funds under its 385 million euro ($534.32 million) standby deal
over the failure of Bosnia's two regions, the Federation and the
Serb Republic, to implement economic measures on which the loan
So far in 2014 the Federation has raised 110 million marka
from T-bills and has received one IMF loan tranche worth some 50
million euros, leaving it well behind schedule for the year.
Federation Prime Minister Nermin Niksic said on Tuesday the
government would most likely revise its 2014 budget or cut its
spending to secure budget liquidity if it fell short of IMF
($1 = 1.402 Bosnian marka)
($1 = 0.7205 Euros)
(Reporting by Maja Zuvela; Editing by Hugh Lawson)