Finance Ministry Places USD7.5 Mn Government Bond

Concorde Capital: The annual borrowing limit for domestic debt, according to Ukraine?s amended ?2005 Budget Law? is set at USD1.2 bn. If the government maintains this pace, we question how they will meet the targeted limit. Naturally, the government strives to gain momentum through steadily falling yields and a growing demand for government bonds. This will allow the government to attract funds with longer-maturity terms at rates even lower than Eurobonds. While in 2003-2004 the longest maturity was three years, the current rate is four-five years. During the last placement, demand exceeded supply significantly, as can be seen by yield dynamics: 11.82% and 11.22% in January; 9.82% in February; 6.74% in March; and 6.48% in April.