Belarusian bonds fell on Russian market

The price of the Belarusian first bond issue listed on the Russian market has significantly declined for the last week.

The annual return on government bonds was 9.41% on February 24 against 8.82% on February 18, Regnum information agency says.

So, the return on bonds have has hit a record high. As financial experts suppose, this fact may mean that foreign investors have lost confidence in Belarus and cost of borrowed reserves for the Belarusian government has grown.

On January 19, Belarus placed a Eurobond worth US$800mn with a yield of 8.95% maturing in 2018. The Belarusian government plans to appeal to the EAEC Anti-Crisis Fund asking for a $2bn loan, placing Eurobonds worth $200mn and attracting RUB 8bn in 2011. On 16 February, Belarusian Minister of Finance Andrei Kharkavets complained at unfavourable bond market conditions, but didn’t announce the exact date of placing additional Eurobonds and issuing bonds in Russia.