The Central Bank supported the proposal of the Ministry of Finance to make it mandatory to replace Eurobonds with local bonds

Elvira Nabiullina, Chairman of the Bank of Russia, advocated that the replacement of Eurobonds with local bonds should become mandatory. At the same time, she noted that issuers should be left with the opportunity to be excluded from the rule by decision of the intergovernmental commission.

On February 8, the Finance Ministry called for obliging issuers to issue “substitute bonds.” The replacement of Eurobonds allows you to return access to at least some of the assets that have become inaccessible due to sanctions. According to the regulator, as of November 2022, in total, more than 5.5 trillion rubles were blocked due to restrictions. Approximately 20% of this amount is the money of Russian private investors.

At a press conference following the meeting today, February 10, on the key rate, Elvira Nabiullina said that substitution should become mandatory in order to protect Russian bondholders.

“Of course, the situation can be more complicated, in different situations there may be different consequences, and, probably, it is necessary to leave the possibility for such an exception, but with reasonable consideration of the need for such an exception within the framework of the government commission,” the head of the Central Bank noted.

Now the conversion of Eurobonds into local bonds is advisory in nature.

For more information about “replacing bonds” – in the material “Kommersant FM” “Eurobonds are looking for ways to replace.”

Erdni Kagaltynov

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