Belarus will fulfill its obligations under Eurobonds in Belarusian rubles

29 июня 2022
Belarus will perform the debt obligations on Eurobonds in Belarusian rubles at the rate of the National Bank on the date of payment. The decision was taken by the government together with the National Bank. According to the Ministry of Finance, the measure is enforced due to the fact that the paying agent and other members of the international payment system can't guarantee the completeness and timeliness of the transfer of money to all holders of Eurobonds.  The coupon yield beneficiaries have already faced with this falling short of funds transferred by the Ministry of Finance in February.

Yuri Seliverstov, Minister of Finance of Belarus:

The first stage of this transformation is that today we transfer the interest income to the account in Belarusbank to the recipient of the Citibank, which is the agent. It has the right to receive this money and think about how to bring it to its customers. But we'll offer alternative schemes in the near future (we're working on it now): we will make a new issue and exchange it for the old one with the possibility to pay in another currency, but it will be quoted in dollars, while the payments will be, say, in Belarusian rubles. The new issue provides for the possibility of bypassing the payment agent, which does not bring payments to investors.

It is also planned to offer investors an early redemption of securities, but at a discount. The size of the discount will not be insignificant - the quotation of our securities is now at 18% of the face value.