International financial organizations ready to issue hryvnia bonds - EBRD
2013-07-05 10:45:55
International financial organizations could issue their hryvnia bonds on the national market of Ukraine.
EBRD's senior banker Oleksandr Pavlov told a round table on Thursday.
"In cooperation with different authorities and the Verkhovna Rada Committee, draft amendments were adjusted to the law on securities and the stock market in compliance with which, international organizations could issue their hryvnia bonds on the national market of Ukraine," Pavlov stressed.
He also noted that following the law came into force, the European Bank for Reconstruction and Development will be able to propose its new instrument on the market - the hryvnia bonds.
According to the senior banker, this process will take many months. When bonds are placed publicly, following that it is possible to expect the projects, financed by the bank, he noted.
"Now, it is difficult to say what volumes or interest rates and the terms will be for our first pilot issue. We consider that the start of this process is the main task, development of a mechanism and bringing that instrument to the market and it will be clear in the process of the market testing on what conditions we will be able to accept this money," Oleksandr Pavlov said.
He also noted that irrespective of the terms, according to which the bank could place those bonds, crediting in the hryvnia will be for a longer term than usually on the market. "These will be two, three and possibly five-year credits to those economy sectors, which depend on the domestic market and have no the export component. The short money market will be transformed into long-term credits," the EBRD senior banker stressed.