Analysts: State Can Be Satisfied with Bond Emissions This Year

Bratislava, November 19 (TASR) - The state has borrowed more than planned this year and can be satisfied with the results of its bond issues, economic analysts polled by TASR concurred on Tuesday, adding that despite a number of domestic and foreign risks, their risk-related additional fees have gradually stabilised, although they are still among the highest in the eurozone. Slovakia returned to the financial markets on Monday (November 18) for the last time this year, according to the auction schedule. The Debt and Liquidity Management Agency (ARDAL) borrowed nearly €500 million in the competitive part of the auction, with investors showing interest mainly in longer bonds maturing in 2033, 2034 and 2036. The average yield on these bonds ranged between 3.26-3.51 percent, which is only slightly higher than in sales of the same bonds in the recent past, pointed out analyst at Slovenska sporitelna bank Marian Kocis. ARDAL can be satisfied with the results of the November auction, as well as with the whole year, opined CSOB bank's chief economist Marek Gabris. "The agency benefited from the drop in the official ECB rates, as well as the fact that no major disaster came from the external environment. Another important support was the fact that after the formation of the new government there was no need to be constrained by the debt brake again," he noted, adding that as a result, the state has accumulated a substantial amount of cash reserve, which is estimated to be around 6 percent of the economy's output. "Overall, the course of issuance activity this year has been very good and the targets presented at the beginning of the year were even surpassed, which given the macroeconomic environment of this year in our country, in Europe and in the global economy I perceive very favourably," said analyst at 365.bank Tomas Bohacek. am/mcs