The Ministry of Finance of Russia held two auctions on October 23 with the aim of raising more than 560 billion rubles through the sale of federal loan bonds (FLO).
The Ministry of Finance of Russia announced that both auctions for the sale of federal loan bonds (FBO) with a total of more than $4 billion did not take place due to the lack of buyers willing to accept the proposed conditions. RosSMI wrote this on Wednesday, October 23.
The Ministry of Finance of Russia held two auctions on October 23 with the aim of raising more than 560 billion rubles through the sale of federal loan bonds (FLO). However, both attempts failed because investors did not agree to the proposed prices.
This happened against the backdrop of expectations of an increase in the main rate of the Central Bank of the Russian Federation to 21%, which affected the decrease in demand for bonds.
Market participants submitted bids with a high level of profitability, which the Ministry of Finance recognized as unacceptable, which is why the auctions were declared invalid.
Recently, due to significant inflationary pressure, the Bank of Russia again raised the key rate – from 18 to 19% per annum.
It was earlier reported that the Russian central bank raised the key rate for the first time in seven months.
Let’s remember that the Bank of Russia in 2022 received a loss of 721.7 billion rubles, which is 27 times more than the loss in 2021 (26.3 billion rubles).
Source: korrespondent
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