Belarusian officials going to Europe to calm down investors

• 11.04.2011, 16:59

Representatives of Ministry of Finance, National Bank, and Ministry of Economy plan to hold some meetings with European investors to Belarus’s Eurobonds to calm down the market.

Interfax-Zapad news agency learned this from a source in governmental bodies.

“Leaders of main economic bodies, Ministry of Finance, National Bank, and Ministry of Economy, are going to have a number of meetings this week with the investors holding Belarus’s Eurobonds,” the source said.

He reminded that the Ministry of Finance and National Bank had earlier issued press releases to calm market players concerned about high volatility of Belarus’s bonds due to the downgrade of the country’s sovereign rating. Letters to foreign export insurance agencies have been sent.

As of April 11, Eurobonds issue Belarus 15 worth $1bn has a rate of 10.8% (placed at 8.75%) in the secondary market; $800mn Belarus 18 has a rate of 10.9% (placed at 8.95%). The secondary market yield of Belarus’s bonds was 12.3-12.5% in middle March.

As earlier reported, on March 15, Standard & Poor's cut its long-term foreign-currency rating for Belarus from B+ to B with a negative outlook due to decline of the country’s gold and foreign exchange reserves and growth of foreign trade deficit.

On March 30, Moody's Investors Service downgraded Belarus's sovereign credit rating to B2 from B1 with a negative outlook.