Bond market in Belarus in 2017: Quick review

Bond market in Belarus in 2017: Quick review


The deficit of domestic resources to accelerate the pace of economic development in Belarus is obvious; the country needs external investments and barriers to their attraction are eliminated, notes Maksim Yermolovich, First Deputy Minister of Finance of Belarus, in an article in the journal "Finance, Accounting, Audit".

Yermolovich, in particular, said that the Belarusian stock market, which is rapidly growing, is now worth a total of $16 billion.

"The volume of transactions here in 2017 has already exceeded $200 million, an increase of six times over the previous year. But most importantly, this segment has tremendous potential for growth, which makes possible the arrival of foreign investors," states the first deputy minister.

The volume of Belarus' bond market is estimated by the Ministry of Finance at $9 billion. The average weighted yield on bonds in Belarus in 2017 looks very attractive: 11.9% in Belarusian rubles, 6.5% in dollars, 5.8% in euros, and 12.5% in Russian rubles.

"The yield offered on bonds of commercial enterprises exceeds the average. Do not be surprised that since the beginning of 2017 the total volume of transactions in the market has reached an impressive $4.5 billion," notes Yermolovich, referring to the advantages of investing in government securities on the Belarus domestic market, in particular, preferential tax treatment.

The Ministry of Finance says prospects for the development of this market look especially bright in connection with the establishment of the general financial market of the Eurasian Economic Union by 2025.