Belarus sells $ 600 million for a period of five years. The bonds bear interest of 8.75% per annum. Agency Standard & Poor's has assigned a preliminary rating of Belarusian bonds at B +.
According to the presidential decree of the Belarusian government in 2010-2011, may issue bonds for up to $ 2 billion with a maturity of not less than 5 years old and placing them outside the country. So far, the official Minsk was able to accommodate only 600 million. Preparing for the Eurobond is not covered in detail. We only know that from 12 to 16 July Belarusian delegation comprising officials of the Ministry of Finance, Ministry of Economy and the National Bank held a meeting with the management of investment companies in the UK, Germany, Switzerland and Austria. According to Finance Minister Andrei Kharkovets told Belarusian Eurobonds are interested in a lot of investors. Geographically, their range is very large. The package includes Europe, Asia, North and South America, Israel. According to the minister, the yield of the bonds is 8.75%. They say, "here we do not dictate policy, an assessment of investors. Therefore, the Belarusian side believes, as we evaluate the investors and how effectively we work with them."
Does the issue of bonds that the Belarusian government will not take new loans, for example, the International Monetary Fund? A representative of the National Bank Anatoly Drozdov said:
"It has been stated by the President of the Republic of Belarus, which is currently required in loans to the IMF do not. This does not mean that we give up on it completely, just at this time is not necessary. Loan What is a eurobond? It loans without conditions. Investors are investing money, get your coupon income in a certain percentage, and that their relationship with the government to an end. No additional conditions defined. A program of the IMF — is a complicated procedure. "
Before Minister Andrei Kharkavets noted that for the debut issue of Eurobonds Belarus the situation in the global financial markets has developed a fairly complicated. According to the economist Leonid Zlotnikov, this loan is quite heavy.
"This is a serious condition, almost 9% per annum. But why do we need money? First, you need to increase the salary before the election — is the most important thing. And what to give, then it is left for later. Life in debt continues. Debts will nagruvashchvatstsa. I I think that at almost 10% of us will be worth the debt. Nearly 9% — is for someone who will buy these bonds. But for the high risk, our country has a low credit rating, so the risk is high for those who distribute these obligations. One who produce, and the one who spreads — these brokers also do not take a very small percentage. So at 10% in global financial markets — it's expensive. "
On economist Lev Margolinand, the official Minsk has no other sources of funding.
"IMF This year, nothing will. Russia, too. There are only two sources: the sale of the property, and it is not very desirable, and the placement of such a bond issue. By itself, this positive phenomenon. But 8.75% — a relatively large percentage. He does not go to any comparison with the interest rate at which gave Russia and the IMF. The situation in the currency markets is also not very favorable. "