The Ministry of Finance placed a record amount of government bonds amid rising borrowing costs

2020-12-16 12:02:20
Machine translation
The Ministry of Finance placed a record amount of government bonds amid rising borrowing costs

Ministry of Finance of Ukraine during the auctions on 15 December attracted a record amount of 51,439 billion in the hryvnia equivalent from placing of bonds of internal state loan (government bonds) including 42 billion, $mishpat 266: 1 million and 56.7 million euros.

 

government bonds in euros to 56.7 million euros under of 2.45% per annum with a maturity period of 323 days, the dollar securities were offered with a maturity of 309 days at $mishpat 266: 1 million at 3.50% per annum.

 

 

In the hryvnia to the Treasury securities posted with these terms and interest rates:

 

the

  • a maturity of 77 days — by 4.22 billion at 10% per annum;
  • the
  • a maturity of 182 days — 10.13 billion UAH at 10.5% per annum;
  • the
  • a maturity of 217 days — 11.38 billion at 10.75 per annum;
  • the
  • maturity 315 days — by 6.72 billion under of 11.56% per annum;
  • the
  • with a maturity period of 511 days — by 3.83 billion under 11,7% per annum;
  • the
  • a maturity of 1,050 days at 2.76 billion UAH under of 11.98% per annum;
  • the
  • maturity 1 533 day — by 3.06 billion under of 12.18% per annum.

 

 

the Ministry of Finance was forced to slightly raise rates on borrowed funds to the average level of 12.18% per annum to cover the repayment of the bonds 10.3 billion hryvnia, and the payment of interest on a large number of earlier issues of government bonds. Total payments will amount to at least 11 billion hryvnia. The rest of the funds will be used to cover the budget deficit.

 

the growing attraction of funds in ruble-denominated bonds as it always increases the supply of currency on the interbank market and reduces hryvnia resources, which entails the strengthening of the hryvnia, which yesterday again settled from 27.84/of 27.85 UAH/USD to 27.75/of 27.77 USD/dollar.

 

a Further sharp strengthening of the hryvnia stopped the national Bank of Ukraine, which repeatedly went at the interbank with buying the excess currency and bought this time, not less than $30-40 million.

 

Today, the situation on the interbank market will be the same as the buyers of the bonds will continue to sell the currency for the redemption of the bonds.

 

the strengthening of the hryvnia exchange rate leads to a reduction of currency proceeds from exporters, and a reduction in purchase prices for grain and, accordingly, to strengthen the rate of 1.6% over the last week. Let's hope that their actions NBU will not allow sharp strengthening of the exchange rate as it was during 2019 when the rate rose by 15% for the year.

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