Rus News Journal

Moscow has conceived a liking for the European money

Yesterday vitse - the mayor and the head of department of foreign economic relations of the Moscow government Joseph Ordzhonikidze has declared city intention to place the second after crisis of 1998 an euroloan on 400 million euro. Thus, the volume of loans of a city in the European market will reach 700 million euro. It became possible thanks to success of the first eurobonded loan which placing has come to the end last week.

we will remind that the first bonded loan on 300 million euro has been carried out last Tuesday (in detail told about it). Bonds have been placed with profitableness of 10,25 % annual that has very much pleased Moskomzajm. However, the head of this department Sergey Pahomov then has declared that, if not acts of terrorism in America, the destabilising financial markets, it would be possible to occupy on more favourable conditions . The city means profitableness by more favourable conditions 9,65 - 9,7 % annual, that is current level of profitableness of eurobonds of the Russian Federations nominated in DM with repayment in 2004.
to this level of Moskomzajm will aspire at placing of the second euroloan this year. Its volume - 400 million euro is already known. In euro the city authorities explain placing of bonds dearness of dollar loans. dollar loans are now expensive and lean against profitableness which on four - leaves five years for 13 % annual - Sergey Pahomov marks.
According to Joseph Ordzhonikidze`s yesterday`s statement, if till the end of the year the volume of loans will not manage to be increased to 700 million euro, the authorities will stop on that sum which could master . Two thirds of extra means are put in profitable projects. Today it is favourable to direct money for housing construction, in particular, a construction of an engineering infrastructure - mister Ordzhonikidze has noted, having added that, probably, the part of money will go on transport programs, such, as building of monorail road .
Chances that placing of the second euroloan will pass successfully, are high enough. At least, bonds of the first loan have perfectly dispersed among investors. The only thing that can prejudice success, - the action of Association of creditors of developing countries (Emerging Markets Creditors Association, EMCA), considering that before realisation of loans Moscow should settle credit disputes with one of the international banks. The association asserts that the Russian capital should extinguish the credit for 180 million Swiss francs ($111 million), corresponding percent and fines to this bank which name is not called. Now there is a proceeding about it. However, at realisation of the first loan investors have been informed on it and it was not reflected in any way in their demand for the Moscow eurobonds.

SERGEY - TJAGAJ