Issue of MEKKAM-6 #117 has been cancelled

/IRBIS, Jan.06, 00/ - On January 03, 2000 the Ministry of Finance made an attempt to hold an auction for offering the 116th issue of MEKKAM-6 with 182 days of circulation and announced volume of the issue 500 mln tenge and 50% restriction level for the participation of noncompetitive applications. As the representative of the emitter informed KASE, the issue has been cancelled due to unsatisfactory price terms offered by dealers and their clients. This is the second unsuccessful attempt of the emitter to place half year non- indexed state treasury bills during this week. In IRBIS analysts' opinion, successful placement of this instrument on last six auctions of last year was mainly due to a support of the National Bank, which financed the emitter to pay off its pension and wage debts to budgetary organizations. It is also possible that the Ministry of finance had chosen this method as the main one to attain a positive net-borrowing balance under SS program in 1999. Now the head bank of the country does not support the emitter. Absence of SS repayment during this week was an additional problem, and as a result, investors have no opportunity to reinvest the funds received from the repayment into new MEKKAM-6.