Finance Ministry changes policies for local bond auctions

The Finance Ministry said yesterday that as of May 14, it will change price determination at its local bond auctions to be set by the market, Deputy Finance Minister Andriy Kravets said, according to Interfax. Kravets indicated the move was in response to IMF requirements as stipulated in the government’s USD 16.5 bln standby loan agreement. Kravets said that the Finance Ministry will soon accept bids for ‘primary dealers’ to provide daily price quotations and boost secondary market activity in local sovereign issues. Since the beginning of the year, the government has sold 6.6 bln in local bonds; the state budget has targeted UAH 26 bln in proceeds from local bond sales this year. In addition, Ukrainian News reported that Kravets said the Finance Ministry planned to go to weekly local bond auctions, after its next scheduled tender on May 14.