approaching the next termGovernment Bonds maturity for a large sum, but the government has already collected the necessary funds. On the eve of Prime Minister personally asked the banks to buy new bonds.

February 10 the Ministry of Finance to pay off bonds on the domestic goszayma 1,7 billion UAH. Two auction - 26 and Jan. 28 - indicate that the state has decided for some time poekonomit and offer banks reduced interest rates.

Last autumn issue of a shortfall Cabinet decided, by placing Government Bonds with an average yield 26-28% per annum. The maximum rate of interest exceeded 30%.
In January, in order not to pay the market price, the government went on a cunning maneuver. This past Monday, the National Bank was held enlarged meeting of the Board National Bank of Ukraine and representatives of major banks. It was attended by Prime Minister Yulia Tymoshenko. She asked to buy new issues of government bonds. The Premier said, as banks with liquidity. It was about redemption of Government Bonds of the regular auctions urgency 6,9, 24 and 36 months of future primary auctions. Also, look what is happening to agriculture - that is not driven resource paper and then no more money for lending to farmers “, - said deputy chairman of one of the largest banks, which participated in the meeting.

This Thursday the sale were offered only two types of securities - for a period six months and year. When the maximum allowable 26% of the first type of Government Bonds Government has appointed an average yield of 21.3%, the second - 24% per annum. In the end it was collected and 760.2 million UAH 0,81 .- respectively.

Immediately after meeting with Tymoshenko”s bankers, on Tuesday 26 January, the Finance Ministry also saves. He proposed to place a range of papers from six months to 2.7 years. Income them were quite modest - from 20% to 23.06% in average, although the “maximum speed” was declared, up to 28% per annum. Because of the economy managed to collect only 169,5 million UAH.

“Reducing the demand for medium-term bonds were offset by increased demand for short-term Government Bonds. We believe that growth in demand for short-term bonds reflect investors” expectations regarding the fact that in view of the large settlement of 10 February the Ministry of Finance may again increase the yield of these bonds is similar to as happened in October, “- says head of the analysis of financial markets,” ING Bank Ukraine “Alexander Pecheritsyn.

In his view, the strategy of the Ministry of Finance to raise loans in early February is extremely uncertain. On the one hand, representatives of the Ministry have confirmed their intention to no longer increase the yield of bonds and not to attract large amounts by placing only short-term bonds. On the other hand, in contrast to the previous auction on Thursday its intention to conduct an extraordinary auction on placement of a six-month and 12-month bonds gave reason to believe that the Ministry of Finance plans to finance large-scale re-settlement by issuing short-term Government Bonds - rather than postpone the debt load on the bonds longer term treatment.

If this hypothesis is correct, the Ministry of Finance continues to risky overhang of government debt repayment in April-October 2010 For this reason, several weeks on the banking system crawling rumors about the imminent restructuring of the “short” issues on which the government appoints 26-28 %.

source in one of the banks suggested that the Finance Ministry may propose to restructure the issuance of government bonds, which are deployed in autumn 2009 under the high interest rates. Moreover, such an offer the banks could get this Monday the prime minister personally. Predpravleniya UkrSotsBank Boris Timonkin called “the idea of restructuring nonsense. A deputy”s largest bank said that the issue was not discussed. Although said that was only present at the meeting.

However, some banks from the group”s largest honestly confessed that in their portfolios no “short” Government Bonds. In particular, it Oschadbank, Ukrsotsbank, Brokbusinessbank, “Finance and credit”. Probably not, and these securities in the portfolio VTB - a couple of months ago predpravleniya institutions Vadim Pushkarev Government Bonds were judged unattractive.

from the actual holders of “short” and lucrative Government Bonds responded to the appeal only OTP Bank. Its head of operations in the stock market Oleg Serdyuk said that the institution has a portfolio of such securities, because it is a primary dealer in Government Bonds placement. “Restructuring proposal we received no” - he added.

According Serdyuk, talk about any restructuring is premature, for it has no objective reasons. “If necessary, the Finance Ministry will not be difficult to attract the necessary funds - liquidity of the market is high,” - he said.

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