Tuesday, 24 April 2018 | News today: 22

Finance Ministry says high volume of offers reduced interest rate in latest bong auction


High interest, which was triple the offer, led to a reduction of the interest rate reached by the Finance Ministry on its 1,9 billion denars (31 million EUR) bond offer. The interest rate dropped to 2,4 percent, down 0,2 percent from the initial offer.

The Ministry informed that they received offers totaling five billion denars and issued a press release criticizing earlier statements by the social-democratic SDSM party, which condemned the bond auction.

“SDSM maintains a line of political propaganda trying to present bond auctions as something abnormal. Despite this, we see investors showing huge confidence in the bond program. All countries in the world use bond auctions, and in Macedonia this financial instrument was first introduced 13 years ago, by SDSM, whose then Finance Minister Nikola Popovski used it do cover deficit spending, often at interest rates five times the ones reached today”, said the Finance Ministry.

SDSM issued a press release saying that the bond auction should have amounted to only 15,8 million EUR, because this is the maturing debt at the moment. SDSM added that the country needs a responsible Government which will put an end to unnecessary bond auctions.