MoF's financing plans

Обзор облигаций 29.07.2015 The MoF announced that it received US$4.7bn of external financing for 7M15 and repaid US$4.2bn of FX-denominated debt. In its presentation to the Ministry Board, the MoF also stated that it anticipates US$3.2bn in financing through the end of the year, including two tranches from World Bank for a total of US$1.0bn, US$1.0bn US government-guaranteed financing, and the remainder in loans from the European Commission as well as from several governments. However, it mentioned no forecast of receiving further IMF loans or debt repayments scheduled through the end of the year, most likely due to ongoing debt restructuring negotiations. Investment implications: According to our forecast and the current debt repayment schedule, the MoF is scheduled to repay at least US$5.5bn through the end of the year, including the US$3bn "Russian" Eurobond and two Eurobonds that mature in September and October. The MoF's projected US$3.2bn of possible financing will be sufficient to complete this year's payments only if the debt is successfully restructured. Otherwise, funds will be insufficient to cover all state budget FX needs.