Kazakhstan will make decision about refinancing of eurobonds-99 in June

/REUTERS, London, April 20, 04/ - In the middle of June Kazakhstan will make decision about refinancing of eurobonds of the year 1999 for $300 m. issued for five years with maturity in October, said minister of finance Arman Dunayev on Monday. Head of Kazakh Ministry of finance informed bankers and investors about it at the conference of European bank for reconstruction and development (EBRD) having added that in case of refinancing new eurobonds may be denominated in tenge. "We have two variants. Make payments from the budget or refinance the debt", - said the minister. "In the latter case they will hardly be bonds denominated in dollars. They should be denominated in tenge in order to avoid speeding-up of inflation", - he added. Under the pressure of currency inflow to Kazakhstan from sale of oil - main export goods - tenge is constantly strengthening against dollar and National Bank does not exclude upgrading o the forecast of average annual rate of tenge from the present 138.3 per $1. Analyst of Bear Sterns Timothy Ash thinks the decision about refinancing of Kazakhstan bonds may be unexpected for the market. "They have much enough cash. I did not presume they would need money so much. But it's quite possible", - he said. ($1=KZT137.64) [2004-04-20]