FX-denominated repayments refinancing

Макроэкономика 18.02.2015 The MoF last week repaid the largest domestic debt repayment denominated in FX since the year beginning and scheduled for 1Q15. This repayment was mostly refinanced at the beginning of the month via short-term FX-denominated bonds that mature on March 24, 2015. However, as the MoF has no other sources for FX financing now and anticipates the debut tranche of the IMF loan at the beginning of the March, this situation caused needs in new FX financing from domestic sources to cover the nearest FX domestic debt repayments. As the MoF is scheduled to repay about US$50m in domestic principal and interest repayments today, and the volume of needed FX is similar next week, yesterday's FX proceeds should cover these two repayments. Although two domestic bonds with 2-year and 5-year maturities attracted no demand at yesterday's auction, the 28-day USD-denominated bond with redemption on 17 March received and accepted a sole bid for US$100.0m (par value) at 8.75%, the same as was seen at the auction two weeks ago, providing budget proceeds of US$99.36m. Actually, proceeds will cover the MoF's needs in FX through the end of the month and until mid-March when the MoF expects to receive new IMF funds. With about US$240m in repayments scheduled for 17 and 18 March, we anticipate new offerings of FX-denominated bonds until mid-March only if the IMF tranche is not received prior to these repayments.