Czech FinMin delays Eurobond issue.

By bne IntelliNews April 29, 2010
The country will not offer any euro-denominated government bonds at the current juncture, finance minister Eduard Janota stated. He highlighted that currently the market conditions were not appropriate for a successful bond issue in terms of both interest in it and price, which are among the major criteria for its timing. Therefore, it could be easily postponed, but a Eurobond issue would probably be done by end-September. Janota said that there were also possibilities for private placement issues. According to him, the ministry is to adopt a wait-and-see attitude and monitor market developments until Greece fulfils the EU and IMF requirements and the EU-IMF assistance has been provided for refinancing its debt, but also until the markets settle with regard to Portugal, which rating was also downgraded by the international rating agency Standard & Poor's. The government had earlier announced plans to sell EUR 1bn in Eurobonds by end-May after it raised EUR 1.5bn from the sale of euro-denominated bonds in April 2009. Janota has also highlighted that the bond issue should not take place close to the general elections to the parliament's lower house on May 28-29. The country's banking system is not likely to experience significant problems due to the debt crisis in Greece as only some 0.5% of its assets are in Greek bonds. Still, local banks would be pressed to make write-offs as under the S&P worst scenario, the holders of Greek bonds are to take up some 30-50% of their claims. Nevertheless, the problems in Greece and the challenges in Portugal might make it harder and more expensive for the country to get money from a bond issue on the European markets. The other possibility would be domestic issues, but the market might soon be saturated, which would make the costs of debt servicing grow further.

Related Articles

Czech CSSD proposes 2014 general and European elections to be held together.

Social Democrats (CDDS), the major Czech opposition party, proposed next year's general and European elections to be held on the same day, CTK news agency reported. CSSD leader Bohuslav Sobotka ... more

Tesco Czech faces fine for selling products containing undeclared horsemeat

The Czech unit of UK retailer Tesco faces a fine of up to CZK 3mn (EUR 116,000) for selling beef lasagne containing undeclared horsemeat, Radio Prague reported. The state-run Agricultural and Food ... more

Czech Senate votes to limit immunity of lawmakers, judges.

The upper house of the Czech parliament, the Senate, voted on March 20 a constitutional amendment to limit the immunity of lawmakers and constitutional judges, Radio Prague reported. Out of the ... more

Register here to continue reading this article and 2 more for free or purchase 12 months full website access including the bne Magazine for just $119/year.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

Thank you. Please complete your registration by confirming your email address.
A confirmation email has been sent to the email address you provided.

To continue viewing our content you need to complete the registration process.

Please look for an email that was sent to with the subject line "Confirmation bne IntelliNews access". This email will have instructions on how to complete registration process. Please check in your "Junk" folder in case this communication was misdirected in your email system.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

If you have any questions please contact us at sales@intellinews.com

Subscribe to bne IntelliNews website and magazine

Subscribe to bne IntelliNews website and monthly magazine, the leading source of business, economic and financial news and commentary in emerging markets.

Your subscription includes:
  • Full access to the bne content daily news and features on the website
  • Newsletters direct to your mailbox
  • Print and digital subscription to the monthly bne magazine
  • Digital subscription to the weekly bne newspaper

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

bne IntelliNews
$119 per year

All prices are in US dollars net of applicable taxes.

If you have any questions please contact us at sales@intellinews.com

Register for free to read bne IntelliNews Magazine. You'll receive a free digital subscription.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

Thank you. Please complete your registration by confirming your email address.
A confirmation email has been sent to the email address you provided.

IntelliNews Pro offers daily news updates delivered to your inbox and in-depth data reports.
Get the emerging markets newswire that financial professionals trust.

"No day starts for my team without IntelliNews Pro" — UBS

Thank-you for requesting an IntelliNews Pro trial. Our team will be in contact with you shortly.

Dismiss