The Croatian Ministry of Finance sold 1.3 billion kuna (€173 million) and €6.5 million worth of one-year treasury bills at an auction on Tuesday.

The bills mature in one year and the interest rate is 0.01 per cent for kuna-denominated bills, while there is no interest rate on euro treasury bills.

In advance of the maturity of treasury bills worth HRK 1.1 billion, the Ministry offered HRK 700 million and €10 million worth of treasury bills for subscription. Financial institutions submitted bids totalling slightly more than HRK 1.3 billion and €6.5 million and the Ministry accepted them all.

The favourable borrowing terms are due to a large surplus liquidity in the domestic financial system, exceeding HRK 77 billion.

The balance of subscribed kuna treasury bills has now increased by HRK 211 million to HRK 13.8 billion.

The balance of subscribed euro treasury bills has now increased by €6.5 million to €177.5 million.

The next auction of treasury bills will be held on 22 February, the Ministry said.

(€1 = 7.52 kuna)