Belarusian Finance Ministry set to probe popular interest in government bonds
As of June 22nd, the Finance Ministry will start selling state’s foreign currency bonds in book-entry form for individuals. The initial volume of the issue is worth USD 50 million, circulation term – 368 days. Given the rate at 7% per annum the demand for these bonds should be rather high, in particular from owners of substantial currency and rouble deposits. In order to increase the attractiveness of these short-term bonds, the state might lower rates on foreign currency deposits in the banking system. If this experiment proves successful, the state might issue new bonds, both in documentary and non-documentary form with a likely increase in volume and maturity period.