Russian Newslink

Russia

Posted by BradyNet (Thursday, November 18, 1999)
Russian Newslink

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02-21-00 Dieter: Creditors of Russia's far north Yamal-Nenets region have agreed to terms proposed by the region for restructuring a 13.375 billion yen syndicated loan, the financial adviser to the deal said on Monday.

Under the restructuring plan, after an initial $20 million payment, the loan will be redenominated into a $95 million loan repayable over three years with annual interest of 9.5 percent, Fleming UCB said in a statement. The region originally got the yen-denominated syndicated loan, arranged by Lehman Brothers Bankhaus AG, in April 1998. The credit was accompanied by an issue of $100 million in one-year bonds by Lehman Brothers. The region failed to repay the loan in April 1999 and talks on its restructuring started last summer, said Alexei Matveyev, head of investment banking at Fleming UCB in Moscow.

After a meeting on Friday with holders of the paper issued by Lehman Brothers to fund the loan, the Yamal-Nenets administration and Lehman Brothers Bankhaus AG signed corresponding documents, the statement said.

According to the agreement, the region will make the initial $20 million payment within a few days after the meeting, Matveyev said.

02-07-00 Watcher: Russia's Finance Ministry said on Monday it was considering further issues of rouble bonds shortly but had not made a final decision. First Deputy Finance Minister Alexei Kudrin said separately the ministry might issue a small amount of the bonds in February.
"New placements are possible (in February), but only in moderate volumes," He did not give any details, but said the budget deficit this month would be covered mostly by additional placement of previously issued bonds. The ministry also sells about two billion roubles of bonds monthly from unsold stocks of already issued paper. In December the ministry resumed bond issuance, placing 3.77 billion roubles ($137 million) of new bonds and then later making additional placements of previous issues.

01-14-00 Goldbug: I meant to put that in <quotes>, that's not my article it comes from the Guardian.

01-14-00 Goldbug: Russia has revised its defencedoctrine to make it easier to press the nuclear button in an international crisis, while unequivocally declaring the west a hostile power that must be resisted.

A new national security strategy
decreed by the acting president,
Vladimir Putin, on Monday and to be published today marks a radical shift in Russia's view of the world. It ushers in a policy of "expanded nuclear containment" while pledging to resist western attempts to dominate the globe.

The strategic shift lowers the threshold at which Russia may resort to nuclear weapons and is the first foreign policy move that Mr Putin has taken since replacing Boris Yeltsin in the Kremlin on New Year's Eve.

Mr Yeltsin's strategy, decreed in December 1997, declared that
nuclear weapons could only be used "in the case of a threat to the very existence of the Russian Federation as a sovereign state".

The new document states that the use of nuclear weapons is necessary "to repel armed aggression if all other means of resolving a crisis situation have been exhausted or turn out to be ineffective".

The new strategy substantially eases the constraints on resort to the nuclear option. This has been partly triggered by the fact that Russia still commands a large nuclear arsenal, but its conventional forces lack combat readiness.

http://www.newsunlimited.co.uk/inte...

01-12-00 Goldbug: <He took office when Boris Yeltsin resigned on New Year's Eve.> Yes I know that, I mean what are his political leanings--and where did he get started? Was he involved in Soviet/Russian politics all his life, and if so, does that makes him a communist from wayback?

01-12-00 Robert: He took office when Boris Yeltsin resigned on New Year's Eve. He faces little opposition ahead of an election in March, but owes his popularity mainly to earlier successes in the Chechen war.

01-04-00 Goldbug: So who is this Putin character anyhow?

12-06-99 SamC: 40% discount on the principal("haircut")combined with low interest rates for about 7 years represents a huge handout demanded by the Russians.Why not the debtholders demand equities for a portion of the write-off and below-market interest rates?

12-01-99 Bond.com: From "Color" :
12-01-99 Patient-Trader: Chapeau to the guys who floated it - hope you made some profit.

12-01-99 PILLZ: Talks made progress but there were a number of difficulties which we will try to overcome," he told reporters. "We are moving, though not so fast as some wanted," Kasianov said. "I think we have a chance of agreement by Christmas," he added. He said Russia will not be meeting servicing payments which are due this week.

12-01-99 Dakota: <all leaks as usual BIG BS> as usual! people leak for just about every reason except that it is the truth and they want people to know about it.

12-01-99 wally: <kasianov says expects london club debt deal by christmas> what year?

12-01-99 wally: <talks adjourned, no agreement reached> and all leaks as usual BIG BS!

12-01-99 wally: october is ober, nobember is ober; now what about debember?

12-01-99 Rascal: don't worry too much, talks adjourned, no agreement reached

12-01-99 PILLZ: russia's kasianov says expects london club debt deal by christmas

12-01-99 PILLZ: Russia, London Club Agree New Talks In 10 Days-Kasyanov

11-30-99 PILLZ: 11-30-99 PILLZ: NEW YORK -(Dow Jones)- Debt leaked to investors Tuesday indicate the large banks representing Russia 's commercial creditors have agreed to forgive 35% of Russia 's $32 billion in defaulted Soviet-era debt. The rumor comes just two days before a $963 million interest payment on Russia 's London Club debt is due. In exchange, market sources said Moscow bowed to the creditors' demand that the status of the remaining debt be upgraded to that of a sovereign Eurobond. Accordingly, some market participants now believe that Russia will issue 30-year Eurobonds with a seven-year grace period and a step-up coupon. Bankers and traders say the news spread through the market like wild fire and that it pushed the prices of Russia 's Principal Notes and Interest Arrears Notes higher. "The Russians are notorious for pulling this kind of trick," a banker involved in a number of recent debt restructuring said about the leak. People familiar with ongoing negotiations between Russia and large banks representing the country's foreign creditors pointed the finger at Moscow and/or a European bank advising the country as the likely source of the leaked information. With a Dec. 2 deadline set by Moscow fast approaching, bankers and investors speculated that the country wants to demonstrate that after several setbacks, it is now ready to do business. "They know that this is a point at which investors will be making a judgment as to what progress has been made," a banker familiar with the debt talks said.<According to Tuesday's rumored debt proposal, Russia 's new Eurobonds would carry a 2.25% coupon in year one; a 4.5% coupon in year two; a 5% coupon in years three to seven, and a 6.875% coupon in years eight to 30.< Meanwhile, amortization of principal is seen starting at a rate of 0.5% per annum in year 8; 2% in year nine; 2.5% in years 10 to 14; 3% in years 15 to 20; 3.5% in years 20 to 24, and 0.5% in years 25 to 30. <With far-below-market-rates coupons, the deal - if it ever materializes officially - will be a difficult sell for commercial banks which just last year were already burnt by the terms of Russia 's domestic debt restructuring deal. <"If this is the deal, I guess their (large creditor banks) argument will be that this is the best anyone was going to get," said Niclas Sundstrom, chief Russian economist at Citibank in London. <"Banks may just have decided to get this over with and to find a more tradeable instrument," Sundstrom added. <Despite the lack of official confirmation - and the fact that a number of the details of Russia 's rumored debt plan are still missing - several research teams at major investment houses already have rendered analysis to value the deal. <According to Bear Stearns' Eastern European analyst Gretchen Rodkey, a 40% debt forgiveness and a 20% yield - roughly what Russia 's similarly dated outstanding Eurobonds yield - would put the value of the new 30-year Eurobonds at about 16.73 cents on the dollar. <That would provide some upside for Russia 's IANs and PRINs since the securities closed Tuesday at respective levels of 15.5 cents on the dollar and 13.75 cents on the dollar.>>>>>>>>>>

11-30-99 PILLZ: The Russian delegation is seeking a "combination of shifts to lead to a final result," Kasyanov said, referring to debt restructuring. He declined to give details of the debate, citing an accord to keep the talks confidential. Kasyanov said the Russian side came up with new arguments for settlement of the Soviet debt. However, "it is too early to say that they are finding an understanding of Western creditors," he said. Kasyanov said he did not rule out that the restructuring talks will continue into another round. The talks, in which Russia's Vneshekonombank president Andrei Kostin takes a part, will continue on Wednesday. http://interactive.wsj.com/edition/... Emerging Debt - Russia up on restructuring rumor http://biz.yahoo.com/rf/991130/vp.h...

FOCUS-Russia, London Club will continue talks Wed http://biz.yahoo.com/rf/991130/2a.h...

BP Amoco's Loss Considered Business as Usual in Russia http://www.nytimes.com/yr/mo/day/ne...

Communists in Russia now just another party http://www.boston.com/dailyglobe2/3...

As hopes rise that Russia and its London Club commercial creditors could reach an accord on restructuring Soviet-era debt, markets are starting to focus on the details of any upgrade of Soviet-era debt to sovereign Eurobonds. http://www.bradynet.com/bbs/russia/...

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