The Ministry of Finance plans to borrow 10.3 billion KGS domestically in December

The Ministry of Finance plans to raise 10.3 billion KGS for the budget in December by placing government treasury bonds on the National Bank's trading platform. This follows from the preliminary auction parameters.

Five issues of government bonds with maturities of 5, 7, and 10 years and coupon rates ranging from 6% to 8% per annum are planned for December. The largest share of borrowings, 3 billion KGS, is accounted for by 10-year bonds with an 8% rate.

For comparison, in November, the total amount that the Ministry of Finance planned to raise through government securities was 12.6 billion KGS. Of this amount:

• 10.6 billion KGS through the National Bank platform;
• another 2 billion KGS through the Kyrgyz Stock Exchange platform.

Thus, in December, the planned volume of borrowings is 2.3 billion KGS, or approximately 18% less than planned for November.

At the same time, the structure of issues is changing. While in November the Ministry of Finance actively offered securities with a maturity of 2-3 years and individual issues with higher yields (up to 12.86% per annum), the December auctions are characterized by more moderate rates and a shift in focus towards medium- and long-term bonds.