SARAJEVO, May 23 (Reuters) - The yield on six-month T-bills issued by Bosnia’s autonomous Bosniak-Croat Federation fell sharply at auction on Tuesday after investors bid more than double the volume sought by the finance ministry.
It accepted bids, mostly from banks, totalling 20 million marka ($11.46 million) at a yield of 0.26 percent compared with 1 percent at the last sale of six-month securities in December. The region received bids worth 53.6 million marka for the 20 million marka worth of bills offered.
The Bosniak-Croat Federation has stepped up the frequency of Treasury bill sales to help plug a budget gap after the International Monetary Fund suspended loan disbursements because of delays to reforms at federal and regional level.
The IMF has withheld 80 million euros ($89.97 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.
Both regions have resorted to the issuance of domestic debt to cover their budget gaps and finance maturing debt. ($1 = 0.8892 euros) ($1 = 1.739 Bosnian marka) (Reporting by Maja Zuvela; editing by Richard Lough)