Ukraine central bank boosts state bond portfolio by UAH 11 bln in one day

Макроэкономика 18.02.2014 The National Bank of Ukraine (NBU) boosted its portfolio of local government bonds by UAH 11.0664 bln (+7.4%) on February 17, according to a statistical update posted on its website. Alexander Paraschiy: The daily increase in the bond portfolio exactly corresponds to the government’s contribution to the equity of Naftogaz of Ukraine (NAFTO). On February 12, the government decided to increase Naftogaz’s share capital by UAH 11.0664 bln via a contribution of local government bonds to the gas monopoly’s equity. The numerical coincidence leads us to claim that Naftogaz sold its just-received bonds to the NBU. Most likely, the natural gas monopoly will use most of the raised funds to partially repay its USD 3.3 bln debt to Gazprom (GAZP RX).