Belarusian Finance Ministry eager to earn extra $100m on home market via forex bonds

        The Belarusian Finance Ministry will hold another auction to sell foreign currency bonds worth $100 million via the Belarusian Currency and Stock Exchange on 24 September.The interest rate will be 6.85%. The maturity period is 883 days.
       Earlier the Finance Ministry announced plans to carry out a series of auctions to sell government bonds nominated in foreign currency to earn at least $250 million in September-December 2013. The Finance Ministry explained that in comparison with the auctions held in April and July 2013 the interest rate has been reduced from 7.25% to 6.85% per annum, with the volume up from $50 million to $100 million, thanks to the strong appeal of the financial instrument enhanced by the measures taken by the National Bank in July-August 2013.
      In particular, the money the investor bank spends on buying government forex bonds has been exempted from contributions to the mandatory reserves fund. Government forex bonds can now be used as a security to get refinancing from the National Bank. The required sum of government forex bonds, which is used to calculate the standard maximum risk per debtor, has been reduced from 100% to 50%.