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Slovakia sells gov't bonds at lowest interest rate ever

Xinhua, October 21, 2015 Adjust font size:

Slovakia sold its government bonds on Monday at the lowest ever interest rate - and negative at that, with the country now borrowing funds at what amounts to the third best rate on the market, announced Slovak Finance Minister Peter Kazimir on Tuesday.

"That Slovakia enjoys good reputation among investors is also attested to by the fact that not only did we reach the record-low interest rates, but that Slovakia's bonds were -- for the first time ever -- sold off for negative yields," stressed Kazimir.

In practical terms, Slovakia borrowed 112 million euros (127 million U.S. dollars) for negative yields, but when the funds are due -- in three years' time -- the country will give back a lower sum of money than it borrowed.

"In essence, those who lent us the money will actually pay us for the loan," explained the minister.

Kazimir added that as regards government bonds in Europe maturing in five and ten years, only those issued by Germany and the eurozone's temporary bailout fund trade on even lower interest rates. Endit