SARAJEVO, June 13 (Reuters) - Bosnia’s autonomous Bosniak-Croat Federation raised 30 million Bosnian marka ($17.2 million) at an auction of six-month treasury bills on Tuesday to help plug a budget gap in the absence of funds from the International Monetary Fund (IMF).
Investors, mainly banks, placed bids for 31.9 million marka against 30 million marka on offer at an average yield of 0.27 percent, slightly up from 0.25 percent earlier this month, the Finance Ministry said.
Bosnia’s two autonomous regions, the Federation and the Serb Republic, have stepped up the frequency of treasury bill sales to cover budget holes and finance maturing debt after the IMF suspended loan disbursements because of delays to reforms at national and regional levels.
The lender has withheld 80 million euros ($89.70 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 regions are the principal beneficiaries of the aid which they had factored into their respective budgets. ($1 = 1.743 Bosnian marka) ($1 = 0.8918 euros) (Reporting by Maja Zuvela; Editing by Ken Ferris)