OREANDA-NEWS. On 24 March 2009 was announced, that the Verkhovna Rada adopted the legislative project #4194, which revoked the obligatory repurchase of the government bonds by the NBU. The project also allowed the NBU to handle its refinancing policy without the preliminary agreement with the Cabinet of Ministers.

Millennium Capital sees the news to be POSITIVE, since the abolishment of the obligatory government bonds repurchase by the NBU will eliminate one of the ways of unfounded money printing via the government bonds. Meanwhile, it could be noted that the government started its over the schedule bonds issue in February (UAH 1bn), while the NBU was forced to repurchase around UAH 2bn of the government bonds from the commercial banks in February. Additionally, this news complies with the IMF requirements, which may favour the provision of the next tranche (USD 1.85bn) of its stand-by loan.

Millennium Capital is an integrated financial services provider. Established in 2000 by a group of professionals with solid background in securities and corporate finance, Millennium Capital is now one of the major investment banking institutions.