MINSK, 22 February (BelTA) – In 2019 the Belarusian Finance Ministry will start preparations to launch strip bonds on the domestic market, BelTA learned from an article by Deputy Head of the Stock Market Regulation Office of the Securities Department of the Belarusian Finance Ministry Andrei Aksenov in the Finance, Accounting, and Audit magazine.
The Finance Ministry suggests enabling legislative and regulatory conditions for the arrival of strip bonds (Separate Trading of Registered Interest and Principal of Securities or STRIPS).
Strip bonds enable long-term borrowing without increasing the real volume of the bonded debt while offering high-demand short-term and medium-term debt instruments to market players. The scheme also allows evaluating forward rates, which become more predictable.
Strip bonds are expected to benefit the Belarusian Finance Ministry as the issuer of government bonds as well as large and medium-sized corporate borrowers, including banks.
In 2019 the Belarusian Finance Ministry intends to start the development of legislation to enable conditions for the introduction of strip bonds.
