Bankers see a threat to a repeat of 1998 when the bond market
internal state loan collapsed pyramid .

October 27 the government managed to collect a 25 bln. By tradition, the last
months, more than half borrowed money selling T-bills provided with repayment
immediately after the election - in April 2010 gave their location 725, 6 million UAH.
Another large sum - 303, 4 mln. - Given the budget polutoraletnie paper.
Six-month T-bills was offered a record since the 1998 crisis
marginal rate of return - 30%. It is possible that someone provernuli profitable
business and managed to get just such interest, although the average yield
was 25%. For eighteen months the marginal profitability of securities amounted to
slightly less than - 29 5%. The weighted average was also high - 27, 41%.
Such increased profitability of the Finance Ministry has pushed a very poor result of the previous
trading. October 20 he was able to attract only 453 million USD., Even though the nine-month
State securities offered a very decent percentage - between 24 and 52% to 26%
pa, writes InterCredit. The experts could not even guess who made
purchaser of securities at the last auction. However, they are negatively evaluated self
fact increase the profitability of "short papers." "It's not even 1998, it
just MMM. Only then was a company and a scam going on here at
country. For what it's done? For the sake of winning the election? Well, it's stupidity.
Itself, and will have to deal with it "- says one expert bank
market. "Above all else in this situation I was surprised by the banks that bought
Government Bonds. Do not they realize that they simply "be thrown"? The government will not
to pay such big money. A few months later they will do
restructuring in 30 years, with decreasing payments ", - said chairman
Board one of the system of banks. "If the government requires us to
lower interest rates, why the very places the government bonds under such interest? "
- Commented on these words in the National Bank.

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