The European Union synchronizes sanctions against the sovereign debt of Belarus with the United States
Against the backdrop of the disturbing events of recent days, the news about the expansion of EU sanctions against Belarusian banks went almost unnoticed. The appearance of the Development Bank in the sanctions list of the EU deserves special attention.
Why is it important?
We have already reported that in 2022 the Development Bank intends to issue bonds for a record amount of $ 1 billion. At the same time, we noted that the Development Bank, along with the Ministry of Finance, are under US sanctions against sovereign debt, which makes the bonds of the Development Bank a "junk asset" and any buyer of them a target for secondary sanctions.
The decision of the European Union to expand sanctions and include them on the list of the Development Bank is an important step towards synchronization of EU and US sanctions. And a new signal to potential buyers: any transactions with Lukashenka’s bonds are a high-risk area.
So the Development Bank will cancel the issuance of its junk bonds?
Under the conditions of sanctions, such an issue has indeed lost all meaning for attracting external financing.
To turn this waste paper into cash, the regime has only 2 options left:
- An attempt to enter the Moscow Exchange with them. However, we have already warned Russia about the consequences of allocating any loans of the Lukashenka regime — in this case, we will seek the application of secondary US sanctions to creditors and investors. And in the conditions of Russian aggression, this prospect is more than likely to occur.
- Forced sale of bonds to Belarusian commercial banks. In this case, the money on our bank accounts and deposits will be used to purchase bonds. This is the "big robbery of Belarusians", which was repeatedly warned earlier. Given the events of recent days, such a robbery could happen at any moment.
What to do in order not to lose your money?
Constantly withdraw all money from the card and close all your deposits, if you have any. And try to buy as much currency as your possibilities allow.
It’s time to save money.
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