SARAJEVO, June 6 (Reuters) - Bosnia’s autonomous Bosniak-Croat Federation raised 30 million Bosnian marka ($17.3 million) at an auction on Tuesday of six-month treasury bills to help plug a budget gap in the absence of funds from the International Monetary fund.
Investors, mainly banks, placed bids for 53.3 million marka against 30 million marka on offer, at an average yield of 0.25 percent, data from the Sarajevo Stock Exchange (SASE) showed. The average yield was down from 0.26 percent at the last comparable sale in May.
The Federation has stepped up the frequency of treasury bill sales to help plug a budget gap after the IMF suspended loan disbursements because of delays to reforms at national and regional levels.
The lender has withheld 80 million euros ($90 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 have resorted to the issuance of domestic debt to cover their budget holes and finance maturing debt. ($1 = 0.8887 euros) ($1 = 1.738 Bosnian marka) (Reporting by Maja Zuvela; Editing by Susan Fenton)