The Financial Times spoke with investment fund employees about the situation with Belarusian government bonds as a sharp decline in their value is taking place. Employees of the companies expect that the EU may impose a complete ban on trading in Belarusian Eurobonds. As a result, the funds will remain with securities, payments on which are extremely unlikely due to the deep economic crisis that the regime’s policies has brought upon the country. And then, they won’t even be able to sell them and get some of their money back.
Main points from the material of the Financial Times:
- government bonds of Belarus collapsed on Monday when the EU countries, the US, Canada and the UK introduced tough new sanctions against the Lukashenko regime;
- investors have reacted to reports that the new restrictions may include a ban on "Venezuelan-style" trading in Belarusian government bonds. In this scenario, investment funds that own government bonds will not be able to sell Belarusian Eurobonds;
- Viktor Szabo, Aberdeen Standard Investments: "If the restrictions, according to which no one can trade the already issued bonds, are introduced, they will be tougher than the measures that have been taken against Russia";
- Timothy Ash, BlueBay Asset Management: "Measures taken against Belarusian enterprises and sectors of the economy may undermine the creditworthiness of Belarus. People [investors, holders of Belarusian Eurobonds] do not want to be left with the bonds without the opportunity to sell them."
The National Anti-Crisis Management (NAM) continues its campaign against new loans that the illegitimate government is unable to afford. The NAM is doing everything possible so that the regime cannot plunge the Belarusian people into greater debt. The European Parliament has already called for a refusal to purchase Belarusian government bonds and other financial securities issued by the illegitimate government.
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