SARAJEVO May 9 Bosnia's autonomous
Bosniak-Croat Federation raised 30 million Bosnian marka ($16.7
million) in an auction of 3-month treasury bills on Tuesday to
help plug a budget gap in the absence of cash from the
International Monetary Fund.
Investors, mainly banks, placed bids for 46.5 million marka
against 30 million marka on offer, at an average yield of 0.19
percent, slightly up from 0.18 percent at the last comparable
sale in April, the finance ministry said in a statement.
Due to the failure of Bosnian lawmakers last month to pass a
key set of reforms, the IMF has withheld 80 million euros
($87.13 million) earmarked under its 553 million euro loan deal
Although the IMF distributes the loan payments to Bosnia's
central government in Sarajevo, the country's two autonomous
regions, the Federation and the Serb Republic, are the principal
beneficiaries of the aid, which they have envisaged in their
The regions have now resorted to the issuance of domestic
debt to cover their budget gaps and finance maturing debt.
(1$ = 1.788 Bosnian marka)
($1 = 0.9182 euros)
(Reporting by Daria Sito-Sucic; Editing by Gareth Jones)