The Croatian Ministry of Finance reported on Wednesday that it had sold HRK 1.96 billion (€260m) worth of treasury bills at an auction on Tuesday.

Ahead of the maturity of treasury bills worth HRK 2 billion, the Ministry offered the equivalent amount in treasury bills for subscription. Financial institutions submitted offers worth HRK 2.24 billion, and the Ministry accepted 1.96 billion.

The treasury bills, worth HRK 1.96 billion, were issued with a maturity of one year and at an interest rate of 0%, the same as at the previous auction of kuna-denominated treasury bills held on 19 October.

The low interest rate is the result of surplus liquidity in the Croatian financial system, reaching roughly HRK 69 billion.

After today’s auction, with the maturity of HRK  2 billion worth of treasury bills, the balance of kuna-denominated treasury bills decreased by HRK 41 million to HRK 13.68 billion.

(€1 = HRK 7.523492)