Marchenko: Finance Ministry's goal in public debt market is to switch to long-term instruments, dictate conditions
The Ministry of Finance of Ukraine strives to be as efficient as possible in the markets of state internal and external debt, avoiding sudden movements, Minister of Finance Serhiy Marchenko said in an interview with Interfax-Ukraine.
"We have minimized borrowings on short-term instruments. There are practically no three-month or six-month bonds. This is the main goal - to switch to long-term instruments and that the Ministry of Finance dictate market conditions," he said.
In an exclusive interview with Interfax-Ukraine, Marchenko said among the goals is the exclusion of cases when some market participants manipulate the situation, trying to artificially create better conditions for themselves.
"Now we have a partnership: we borrow on the terms that are acceptable to the Ministry of Finance, but at the same time correspond to the current macroeconomic and market conditions," the minister said.
Marchenko added that the Ministry of Finance constantly wants to create long-term instruments, and stated that there is a constant demand for two- and three-year bonds, although the ministry also offers five- and six-year government bonds at the same time.
Commenting on the decision of the National Bank of Ukraine to postpone the increase in the risk weight of government bonds in foreign currency to 100% for only six months, the minister called this decision strange and announced a continuation of the discussion with the central bank regarding the rollover on such currency securities.
"Even foreign exchange securities are securities issued by the government and guaranteed by the state. We will conduct a discussion with the National Bank on an adequate assessment of these securities. The priority for us is domestic borrowings in hryvnias, but if there is a need to borrow on the domestic market in foreign currency, they [foreign currency government bonds] should be valued at the same level as in the hryvnia," the minister explained his position.