Slovakia borrows cheaply

Slovakia has managed to borrow more than half a billion euro on the financial market on Monday's auction, according to the Debt and Liquidity Management Agency (ARDAL). J&T Banka analyst Stanislav Panis didn't expect the state to have any problems selling bonds in this auction despite the turbulent situation on financial markets. "Investors see Slovak bonds as a low-risk security, offering an attractive yield in the government bond category. The Government has been able to borrow money at the cheapest ever rate over recent months thanks to the European Central Bank's quantitative easing," stated Panis. He sees the reason for this in reviving inflation and a potential growth in yields in the USA due to the reform plans of new president Donald Trump. "This will definitely have an impact on interest rates in the eurozone as well. Therefore, it's reasonable for the Government to build up as many supplies in advance as possible when terms on financial markets are still pretty favourable. It's realistic to expect that refinancing will be more expensive as of next year," added Panis.