Belarusian banks set to redeem state bonds for population to boost their liquidity

As of April 2016, Belagroprombank started to redeem government foreign currency bonds for individuals. Bonds with more than three-year maturity period are not popular among the population, as they do not allow early redemption. By redeeming bonds, the banks will create secondary market for bonds, which will enhance their liquidity. It is anticipated that other banks would follow this example, quotations would grow to the nominal value, new bonds would be issued with lower maturity, and bank charges on these bonds would reduce. If bonds’ maturity period decreases to 1.5 years with yield at least 5% per annum, they may become an alternative to currency deposits and increase the overall currency inflow to refinance state liabilities.сс