To provide funds to bridge time gap between inflow of revenues and execution of expenses of the Republic budget, the Government of the Republic of Montenegro issues Treasury bills. Treasury bills are issued with the 28-day, 56-day, 91-day and 182-day maturity, in dematerialized form and in denominations of EUR 100. 

Treasury bills are sold as discount securities, by the auction method. It means that T-bills are bought at the auction at lower than nominal price, but the repayment is made at the nominal value at the maturity day. The difference between the nominal value and the “purchase price” is the interest earned on the investment. 

To participate in an auction, participants need to submit the completed bid to the Central Bank by the time limit specified in the published “Last notice for the auction”. All natural and legal persons are entitled to buy T-bills. The Government undertakes to pay obligations related to the Treasury bills issued and registered with the Central Depositary Agency at maturity. Title to T-bills is transferable and they can be bought and sold at the secondary market. 

The auctions of T-bills on behalf of the Government of the Republic of Montenegro are performed by the Central Bank of Montenegro as its fiscal agent. Participants that act at the auctions are enterprises, banks, insurance companies and natural persons with domestic and foreign capital. 

The first auction of 28-day T-bills was organized on September 4, 2001.

The total amount of all Treasury bills issued from 4 September, 2001 until 31 December, 2006 is EUR 654.629.132,04 and the total amount sold is EUR 588.332.305,22. The situation by years is as follows 

Diagram of sold T-bills from 2001 to 2006:

  Data for January 2007 

The Central Bank of Montenegro organized 22th auction of 182 day T-bills, on 9 January, on behalf of the Ministry of Finance of the Republic of Montenegro.The participants at the auction included local banks with competitive bids and the bought T-bills were restricted in favour of reserve requirement. The issue fund in the amount of EUR 1.3 million was realized in full while the demand was higher than the offered amount by EUR 0.2 million. The average weighted interest rate amounted to 0.90%, the lowest accepted interest rate being 0.49% and the highest being 0.99%.

Data for December  2006:  

The Central Bank of Montenegro organized 28th auction of 91 day T-bills, on 20 December, on behalf of the Ministry of Finance of the Republic of Montenegro.The participants at the auction included local banks with competitive bids - and the bought T-bills were restricted in favour of reserve requirement. The issue fund in the amount of EUR 0.5 million was realized in full while the demand was higher than the offered amount by EUR 0.3 million. The average weighted interest rate amounted to 0.97%, the lowest accepted interest rate being 0.95% and the highest being 0.99%.

Data for November  2006: 

The Central Bank of Montenegro organized 21th auction of 182 day T-bills, on 21 November, on behalf of the Ministry of Finance of the Republic of Montenegro.The participants at the auction included local banks with competitive bids and one non-competitive bid and the bought T-bills were restricted in favour of reserve requirement. The issue fund in the amount of EUR 0.8 million was realized in full while the demand was higher than the offered amount by EUR 1.6 million. The average weighted interest rate amounted to 0.49%, the lowest accepted interest rate being 0.49% and the highest being 0.50%.

Data for October 2006:  

The Central Bank of Montenegro organized 20th auction of 182 day T-bills, on 5 October, on behalf of the Ministry of Finance of the Republic of Montenegro. The participants at the auction included local banks with competitive bids and one non-competitive bid and the bought T-bills were restricted in favour of reserve requirement.  The issue fund in the amount of EUR 0.2 million was realized in full while the demand was higher than the offered amount by EUR 0.5 million. The average weighted interest rate amounted to 0.53%, the lowest accepted interest rate being 0.40% and the highest being 0.69%.   

Data for September 2006: 

The Central Bank of Montenegro organized 27^th auction of 91 day T-bills, on 20 September, on behalf of the Ministry of Finance of the Republic of Montenegro. The participants at the auction included local banks with competitive bids and the bought T-bills were restricted in favour of reserve requirement. The issue fund in the amount of EUR 0.5 million was realized in full while the demand was higher than the offered amount by EUR 0.3 million.  The average weighted interest rate amounted to 0.92%, the lowest accepted interest rate being 0.85% and the highest being 0.99%.   

Data for August  2006: 

The Central Bank of Montenegro organized 19^th auction of 182 day T-bills, on 23 August, on behalf of the Ministry of Finance of the Republic of Montenegro. The participants at the auction included local banks with competitive bids and the bought T-bills were restricted in favour of reserve requirement.  The issue fund in the amount of EUR 0.5 million was realized in full while the demand was higher than the offered amount by EUR 0.8 million. The average weighted interest rate amounted to 0.45%, representing the lowest and the highest accepted interest rate.

 Data for July 2006:

During July, the Central Bank of Montenegro organized 18^th auction of 182 day T-bills and 26^th auction of 91 day T-bills on behalf of the Ministry of Finance of the Republic of Montenegro.The participants at the auction included local banks with competitive and non-competitive bids and the bought T-bills were restricted in favour of reserve requirement. The issue fund in the amount of EUR 1.8 million was realized in full while the demand was higher than the offered amount by EUR 1.3 million.The average weighted interest rate amounted to 2.96% and 0.90%, while the lowest and the highest accepted interest rate fluctuated between 0.90% and 2.96%.

Data for June  2006:

  The Central Bank of Montenegro organized 91 day T-bills auction on June 2006 on behalf of the Ministry of Finance of the Republic of Montenegro. The participants at the auction included local banks with competitive and non-competitive bids and the bought T-bills were restricted in favour of reserve requirement. The issue fund in the amount of EUR 1.0 million was realized in full while the demand for offered amount of EUR 750 thousand was above the offered amount.  The average weighted interest rate for this auction amounted to 1.46%, the lowest being 1.25% and the highest being 1.49%.

Data for May  2006:

  The Central Bank of Montenegro organized 182 day T-bills auction on May 2006 on behalf of the Ministry of Finance of the Republic of Montenegro. The participants at the auction included local banks with competitive and non-competitive bids and the bought T-bills were restricted in favour of reserve requirement. The issue fund in the amount of EUR 1.7 million was realized in full while the demand for offered amount of EUR 13 thousand was above the offered amount.  The average weighted interest rate for this auction amounted to 2.96%, the lowest being 0.90% and the highest being 5.50%.

Data for April  2006:

  During the month of April, the Central Bank of Montenegro organized two 91-day and 182-day T-bills auctions on behalf of the Ministry of Finance of the Republic of Montenegro. The participants at the auctions included local banks with competitive and non-competitive bids and the bought T-bills were restricted in favour of reserve requirement. The issue fund in the amount of EUR 1.7 million was realized in full while the demand for offered amount was higher for EUR 0.9 million.  The average weighted interest rate for 182-day T-bills auction amounted to 0.91%, and for 91-day auction amounted to 2.52%. The lowest accepted interest rate was 0.75% at the 182-day T-bills auctions and the highest accepted being 5.00% at the 91-day T-bills auction.

Data for March  2006:  

The Central Bank of Montenegro organized twenty-third 91-day T-bills auction on 22 March 2006 on behalf of the Ministry of Finance of the Republic of Montenegro. Three banks with competitive and non-competitive bids participated at the auction. The announced issue fund in the amount of EUR 1.0 million was realized in full while the demand for offered T-bills in the amount of EUR 0.2 million was above the offered amount.   The average weighted interest rate for this auction amounted to 0.97%, the lowest being 0.80% and the highest being 1.00%. The purchasers of T-bills at the auction included local banks and the amount of T-bills has been restricted to the reserve requirement.

Data for February  2006:  

The Central Bank of Montenegro organized the fifteenth 182-day T-bills auction on 22 February 2006 on behalf of the Ministry of Finance of the Republic of Montenegro. Four banks with competitive and one bank with non-competitive bid participated at the auction. The announced issue fund in the amount of EUR 1.3 million was realized in full while the demand for offered T-bills in the amount of EUR 1.4 million was above the offered amount.  The average weighted interest rate for this auction amounted to 0.46%, the lowest being 0.45% and the highest being 0.49%. The total purchase price of the sold T-bills amounted to EUR 1.296.960,66 with the interest of EUR 3.039,34. 

The purchasers of T-bills at the auction included local banks and this amount of T-bills has been restricted to the reserve requirement.

Data for January  2006:  

Two 91-day and 182-day Treasury bills auctions were held in January. The issue fund for two T-bills auctions amounted to EUR 2.2 million and was realized in full.The average weighted interest rate for the auctions held in January amounted to 0.49% and 0.69%. The lowest accepted interest rate at the 91-day T-bills auction was 0.49% while the highest accepted interest rate at the 182-day T-bills auction was 0.69%, which is below the average interest rate in December 2005 (0.98%). 

The purchasers of T-bills at the auctions held in January included local banks.