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Bosnia region raises $17.4 mln via 5-yr bond at lower cost
October 20, 2015 / 1:04 PM / 2 years ago

Bosnia region raises $17.4 mln via 5-yr bond at lower cost

SARAJEVO, Oct 20 (Reuters) - Bosnia’s autonomous Bosniak-Croat Federation raised 30 million Bosnian marka ($17.4 million) on Tuesday via an auction of a five-year domestic bond aimed at covering its widening budget deficit in the absence of IMF cash, the finance ministry said.

It said investors placed bids for 61.3 million marka against the 30 million marka on offer. The bond fetched a weighted average yield of 3.056 percent, down from 3.317 percent at the previous sale of the five-year paper in August.

Bosnia’s two regions, the Federation and the Serb Republic, badly need cash to plug their budget deficits which together amount to about 1 billion marka after they failed to secure a new IMF loan. The previous loan expired in June.

They had both drawn up budgets assuming they would get IMF funds. The Federation has said it was negotiating a 200 million marka loan with commercial banks to make up for the IMF cash.

$1 = 1.726 Bosnian marka Reporting by Daria Sito-Sucic; Editing by Mark Potter

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