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Federal loans increased to 1.32b

Published: July 6, 2010; 00:00 · (Vindobona)

The Austrian taxpayers will be pleased: The federal government has been able to borrowing loans for extremely favourable terms. The 3.9-percent government bond (from 2005 to 2020) was increased by € 770m ($972.02) to an average yield increase of 3.008 per

The Austrian taxpayers will be pleased: The federal government has been able to borrowing loans for extremely favourable terms. The 3.9-percent government bond (from 2005 to 2020) was increased by € 770m ($972.02) to an average yield increase of 3.008 percent and the 3.5 percent bond (2005 to 2015) was increased by €550m ($694.12) federal loan for an average yield of 1.912 per cent.

This year so far €18.5b ($23.34) was loaned, which accounts for about 70 percent of the planned 2010 program, according to the head of the Austrian Federal Financing Agency (ÖBFA), Martha Oberndorfer. For both bonds, the demand was very high. It reveals that very conservative assets were still high in demand: "The investors are still risk averse."

The State generated new debts to absolutely low rates: In today's auction 10-year money at 3.0 percent and 5-year money at 1.91 percent was obtained. "This is a fantastic result for the taxpayer," says the ÖBFA boss. The average yield on the current 2020 bond was 42 basis points above the benchmark Germany, that of the current 2015 bond was 35 basis points higher.

For 7th September, the next regular auction of government bonds is planned.

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