Bosnia’s Serb Republic sold BAM 52.2mn (EUR 26.7mn) worth of six-month Treasury bills on the Banja Luka Stock Exchange on March 28, nearly double the EUR 27mn target, bourse data showed. Demand was even bigger, reaching BAM 62.2mn. This was the Republic’s second debt auction for 2013 after it sold out in January a BAM 25mn issue of one-year T-bills. The average annual interest rate in the latest auction was 3.98%, equal to 98.05 of par, up from 3.83% (96.32 of par) on the one-year debt placed in January. The newly sold securities will mature on September 27, 2013.

This was the eleventh issue of T-bills the Republic has auctioned so far after placing successfully four issues in 2011, four in 2012 (as a fifth issue offered for sale last year was unsuccessful) and one issue in 2013 already. At the same time, the finance ministry has said it already repaid in full six of the issues, disbursing a total of BAM 142.17mn. The remaining three issues, placed in 2012 and 2013, have not matured yet as the overall outstanding liabilities on them total BAM 69.5mn. 

The Republic has said it plans to action in 2013 up to BAM 67mn of short-term debt (up to one year maturity), which is an amount equal to 8% of its regular budget revenue accumulated in 2012. The interest rate on the short-term securities due to be issued this year will be no higher than Euribor+3.75%. However, its two debt issues sold so far this year already total BAM 77.2mn, which is BAM 10mn above the full-year target.