Bosnia's entity Republika Srpska raised 25.7 million Bosnian marka ($14 million), slightly more than it targeted, to help bridge a budget gap at an auction of seven-year bonds on Monday.
The yield was lower than at the last sale in September. Bids for the bonds, which carry an annual coupon of 4.5 percent, amounted to 45.2 million marka against 25 million marka on offer, the finance ministry said. They sold at a weighted average yield of 4.01 percent, down from 4.5 percent at the last auction.
The proceeds of the sale were intended to help the region plug its budget deficit after the International Monetary Fund (IMF) and World Bank withheld funds pending economic reforms.
In September, the IMF approved a 553 million euro ($591.99 million) loan programme to support economic reforms and has already disbursed 79.2 million euros to the two entities.
But in order to win the next instalment of about 80 million euros, Bosnia must pass a law raising excise taxes while the regions must adopt new banking laws and their respective 2017 budgets.
