OREANDA-NEWS. April 26, 2012. The Ministry of Finance (MinFin) plans to cut the domestic borrowing programme for 2012 by RUB500bn, Debt Department chief Konstantin Vyshkovski told, reported the press-centre of ATON.

Consequently the annual domestic placement will total RUB1.1trn instead of the RUB1.6trn initially incorporated in the budget law (30 Nov 2011).

Among the existing issues we believe OFZ 26207 and 26208 will experience the greatest supply pressure. MinFin will succeed in placing the scheduled volumes only if it can offer a healthy premium to the secondary market, taking into the account both issues’ relative illiquidity. We therefore expect the news to have the most negative impact on the 26207, 26208 and 26205 issues, with OFZ 26206, 26203 and all issues of the 25th series least affected.