The Finance Ministry on Tuesday sold 1.32 billion kuna (€175 million) worth of three-month and one-year treasury bills at interests of 0.1 and 0.2 percent interest rates, unchanged from the previous few months, in what is the last issue denominated in the local currency kuna before Croatia joins the euro zone on 1 January 2023.

With nearly 2 billion kuna (€265 million) worth of treasury bills falling due soon, the ministry offered bills worth 1.4 billion kuna (€186 million) for subscription. Financial institutions submitted bids worth nearly 2.5 billion kuna (€331 million).

Treasury bills worth 55 million kuna (€7.3 million) were issued with three months’ maturity at an interest rate of 0.08 percent, bills worth 140 million kuna (€18.5 million) with six months’ maturity and 0.1 percent interest, and bills amounting to 1.12 billion kuna (€148 million) with one year’s maturity and 0.2 percent interest.

The same terms and conditions applied as in August, September, and October, mainly as a result of a high surplus of liquidity in the domestic financial system, of about 88 billion kuna (€11.7 billion). The balance of subscribed kuna treasury bills has now decreased by 644 million kuna (€85 million) to 12.4 billion kuna (€1.6 billion).

The next auction is set for 17 January.

(€1 = 7.54 kuna)