MinFin raises UAH 2 bln at unscheduled local bond auction

Ukraine’s Finance Ministry raised UAH 2.1 bln from the
sale of three- and six-month local bonds at its auction held on Aug. 2 after
attracting just UAH 1.0 bln at its July 31 auction.
Notably, the latest auction was not included in MinFin’s preliminary auction
schedule for 3Q18.

Three-month bonds were sold to five out of 11 bidders
at 18.00% for UAH 2.0 bln. In addition, MinFin accepted two out of four bids
for six-month bonds for UAH 74.2 mln at the same rate of 18.00%.

Evgeniya Akhtyrko: It is worrisome that MinFin had to resort to an unplanned auction.
Apparently, the cash deficit of the state budget grew faster than planned by
public finance managers just as the local bond market hasn’t generated enough
receipts, even under relatively high interest rates. Recall, the state budget
revenue was below plan in 7M18, while the general budget posted a deficit of UAH 3 bln in June.