Belarus govt plans to employ ten Russian banks to float state bonds in Russia

<p> MINSK, Jun 28 - PrimePress. The government of Belarus plans to make a contract with ten Russian banks to arrange for the placement of government bonds of the Republic of Belarus denominated in Russian rubles (RUB) and issued in the Russian Federation. This is enshrined in government resolution #358 of June 24, 2021, published on the National Legal Internet Portal on June 26. </p> <p>   </p> <p> The resolution instructs the Ministry of Finance to enter into agreements with Gazprombank, BCS Bank, VTB Capital, Moscow Credit Bank, Russian Agricultural Bank, Commercial Bank for Promotion of Commerce and Business, Sovcombank, Promsvyazbank, Bank AK BARS and UNIVER Capital. </p> <p>   </p> <p> The ordinance was adopted as part of ordinance #183 of May 13, 2021 “On Attracting Foreign Government Loans”, under which the Belarusian government will place securities in the Russian Federation as public debt obligations worth up to RUB100 billion ($1.385 billion at the exchange rate of the Russian Central Bank) in 2021-2023 to refinance the external public debt. </p> <p>   </p> <p> Belarusian Finance Minister Yuri Seliverstov on 13 April 2021 attributed Belarus’ interest in the Russian financial market to the fact that much of the country’s external public debt is denominated in Russian rubles. </p> <p>   </p> <p> The ordinance came into force on the date of its adoption. </p> <p>   </p> <p> In May 2020 the Finance Ministry of Belarus placed the 07 Series of government bonds worth RUB10bn on the Moscow Stock Exchange. The initial yield guidance was 8.25-8.5% per annum, which corresponds to the yield to maturity of 8.42-8.68% per annum. The final yield guidance was 8.5% per annum. They floated public bonds jointly with Russian banks, which acted as organizers of the issue of government bonds of Belarus in Russia’s financial market: Gazprombank, Sovcombank, Financial Corporation Otkrytie, with the Eurasian Development Bank acting as co-organizer. </p> <p>   </p> <p> The EU Council on 25 June 2021 introduced sanctions against largest sectors of Belarus’ economy. Among other things, the EU Council prohibited EU entities and individuals from purchasing, selling, and provide investment services for or assistance in the issuance of, or otherwise deal with transferable securities and money-market instruments with a maturity exceeding 90 days, issued after 29 June 2021. This applies to bonds of the Republic of Belarus, its government, public bodies, corporations or agencies. End </p> <p>   </p> <p>   </p>

2021-06-29

Primepress