English

T-bills auction on Tuesday

The 7th this year’s auction of treasury bills worth €22.5m with maturity of 182 days will be held on Tuesday.

The Central Bank of Montenegro (CBCG) stated that the offers may be submitted by Tuesday at noon. The t-bills maturity is 182 days, ie 28 February.

This year, there were six auctions of t-bills with maturity of 182 days and one of 91 days. Last year, there were seven auctions of t-bills with maturity of 182 days and one of 56 days.

Treasury bills are short-term securities maturing in one year or less, which the Central Bank of Montenegro sells on behalf of the Finance Ministry. Thus budget liquidity is being kept.

Bills are sold at auctions at a discount, ie price lower than the bills face value. When a bill matures, the investor receives the face value.

The difference between the purchase price and the face value equals the interest earned.

Send this to a friend