| Collect Russia 5.5 Billion Dollars of Bonds Issuance |
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| Friday, 23 April 2010 10:22 | |||||||
Page 1 of 2 Moscow
- Russia on Thursday to collect 5.5 billion dollars in the first
international bond since the financial crisis in 1998, because the
country was looking for new ways to improve finances after the
financial crisis.
Issuance of euro bonds (Eurobond) a term of five years with a volume of 2.0 billion dollars and a separate 10-year bonds with a volume of 3.5 billion dollars have "oversubscribed" (excess demand) large-scale, official news agency RIA Novosti reported. Interfax news agency said the earnings yield (yield) of 5-year euro bonds was 3.741 percent and 5.082 percent in the 10-year bonds. Publishing is an important event in modern Russia's financial policies and officials said it could borrow a total of just under 18 billion dollars from international markets this year. Russia has avoided borrowing from the international bond market after the financial crisis in 1998 when the economy went into crisis and the state failed in debt. But the global financial crisis in 2008 - which caused the economy to shrink by 7.9 percent last year - has forced the government to find other ways to meet the state treasury. "The issuance of euro bonds is an important event for emerging market bond markets because it marked Russia's return to international capital markets for the first time since failure (default) in 1998, excluding the stock of debt," said Ed Parker, Head of Emerging Europe sovereigns at Fitch Ratings . He said the issuance will be used for general government purposes, the financing of the budget deficit in 2010. Russia's deficit in 2009 equivalent to 5.9 percent of GDP, the first deficit in a decade. Now facing a prolonged deficit, with the government predicting a deficit of 6.8 percent in 2010 and 4.0 percent in 2011. Prime Minister Vladimir Putin this week estimating that the deficit would drop to 3.0 percent of GDP in 2012 and warned: "In the future needed to return to a zero deficit." To overcome the impact of the budget crisis, Russia also has attracted tens of billions of dollars from state funds collected during the years before the crisis of soaring oil prices. It is also moving to re-launch the privatization of the majority. "In the view that institutions are wise steps to regain access to international markets before running out of reserve funds so as to maintain a buffer against the risk of a sharp decline in oil prices," said Parker from Fitch. | Antaranews | tenderoffer.biz |
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