Demand for Belarusian Eurobonds is High Enough, IMF

29.07.2010 09:50
Архив Редакция

Investors' demand for Belarusian sovereign Eurobonds is high enough. It was reported by IMF's Resident Representative in Belarus, Natalia Kolyadina. "The yield is also high enough. However, it corresponds to the rating, assigned to Belarus by Standard & Poor's international rating agency, and it's natural for the first issue", Natalia Kolyadina stated.

According to her, if Belarus has already had a history of placement, investors’ activity would be even higher, TTT.BY informs.

The IMF representative also recalled that Standard & Poor’s had assigned Belarusian Eurobonds the rating of «B +». «It means that at the moment, the country can provide the yield on Eurobonds, but the risks, related to financial and economic environment, are also high. In this regard, measures, aimed at reducing the current account deficit, maintaining fiscal discipline, built into the Law on budget for 2010, as well as steady economic reforms to enhance its competitiveness will increase the international rating of Belarus and eventually lead to lower expenses when borrowing in foreign markets», Natalia Kolyadina said.

According to her, Eurobonds’ issue «will make it possible close the gap of financing the balance of payments, although in order to fund it in full will require additional measures», She also stressed that, in this regard, the IMF mission to analyze the economy development over nine months, in particular, the balance of payments, state budget and exchange rate. The report on Belarusian economy will be available in about mid-October, Natalia Kolyadina informed.

She also said, that new IMF mission (the previous one completed its work on May 25 — Telegraf) is expected in Belarus in late October — early November. «When there is no program, IMF mission comes not as often as during the program», Natalia Kolyadina explained.

Natalia Kolyadina did not comment on statements of some experts that new IMF program to depend on the placement of Belarusian sovereign Eurobonds and holding deep economic reforms in the country. However, she confirmed that the interest rates on loans from IMF «are significantly lower» than on Eurobonds. «We are already discussing with the authorities the matters of structural changes», Natalia Kolyadina stated.

As Telegraf previously reported, Belarus issued 600 million dollars Eurobonds with yield of 9% for five years. Joint organizers of Eurobonds placement are four foreign banks: BNP Paribas, Deutsche Bank AG, The Royal Bank of Scotland plc and Sberbank of Russia.