SARAJEVO, May 9 (Reuters) - 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 ($87.13 million) earmarked under its 553 million euro loan deal for Bosnia.
Although the IMF distributes the loan payments to Bosnia’s central government in Sarajevo, the country’s two autonomous regions, the Federation and the Serb Republic, are the principal beneficiaries of the aid, which they have envisaged in their respective budgets.
The regions have now resorted to the issuance of domestic debt to cover their budget gaps and finance maturing debt. (1$ = 1.788 Bosnian marka) ($1 = 0.9182 euros) (Reporting by Daria Sito-Sucic; Editing by Gareth Jones)