Complete results of placing of MEKAVM #18/3B

/IRBIS, 10.08.99/ - On August 10 The Ministry of Finance of the Republic of Kazakhstan together with the National Bank has conducted the 18-th auction on placement of MEKAVM -3 (91 days). Announced volume of issue is determined by the emitter at 3 millions of US dollars. Satisfaction size of the incompetitive applications - 50 % from established volume. The complete data and comparison with the previous comparable issue are given below. Type of securities MEKAVM-3 MEKAVM-3 NSIN KZ43L1111996 KZ43L0411996 Trade code at KASE МВМ 03 018 МВМ 03 017 IRBIS' registration number 18/3B 17/3B Nominal value, USD 100.00 100.00 Date of issue 8/10/99 8/03/99 Beginning of the circulation 8/12/99 8/06/99 Date of maturity 11/11/99 11/04/99 Мaturity 91 days 91 days Number of the Primary dealers 8 ( 0) Demand, million USD 3.8 (+ 0.02) Yield on demand weighted av., % p.a. 9.17 (+ 0.17) Scheduled volume, million USD 3.0 ( 0) Actual volume, million USD 3.1 (- 0.08) The cutting off price, USD 97.94 ( 0) The weighted average price, USD 97.94 (- 0.02) Maximum yield, % p.a. 8.41 ( 0) Weighted average yield., % p.a. 8.41 (+ 0.08) Weighted average yield., effective % p.a. 8.68 (+ 0.09) The yield is expressed in a currency form. According to the information of The Ministry of Finance, no applications were received from non-residents for the auction. The Ministry of Finance has ended the 33-rd calendar week with the following results. At a scheduled volume of the placement of $3.0 millions and KZT400.0 million (equivalent in tenge at the rate on date of an attraction - 796.0 million) the emitter has attracted $3.1 millions + 419.1 million tenge (equivalent in tenge at an official rate on 10.08.99 - 820.5 million), whereas actual volume of redemption has made 585.3 million tenge (186.50 millions tenge + $3.0 million at an official rate on 10.08.99 + coupon payment of 2.8 million tenge). Situation in the MEKAVM sector becomes less comfortable for the emitter. The pressure from the market participants grows that forces the Ministry of Finance to increase yield and to use a minimum net drawing balances. Supershort not indexed debt remains the only popular in the market. The last interviews with the National Bank administration (REUTER's today publication), show that it is needless to be reinsured on the devaluation. Therefore to increase the MEKAVM share in a portfolio with the purpose of risk diversification is not meaningful. As long as tenge raises, the rate, received on auction, can after three months be back as the negative tenge yield. The complete comments on a failure of negotiations with IMF somewhat calmed the market participants, and till now this event did not influence the market. The emitter behaviour in the sector of the primary state securities market can not be exactly predicted. Most likely, the Ministry of Finance will allow the further growth of the MEKAVM-3 yield, as the essential increase of the dollar rate is not planned for at least three months The authorities looks calmness and reliance.