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"Lost In Translation" Error Sends Belarus Bonds Plunging

Tyler Durden's picture




 

Yields on Belarussian bonds exploded from 12% to 25% in the space of a few minutes this morning following reports that President Alexandr Lukashenko raised the prospect of restructuring the former Soviet republic’s external debt. As Bloomberg reports, the 2018 bonds collapsed from over 90c to 65c even as Lukashenko said Russian President Vladimir Putin was prepared to provide $500 million of aid if the situation gets “very difficult.” However, two hours later  - following the collapse in bonds - Lukashenko clarified his remarks... "Please calm down," he said, "Belarus has enough money to pay its debts in full." It turns out he meant refinance... not restructure.

 

Belarussian bonds...

 

The first impression...

“The likelihood of the actual bond restructuring is quite high as it could be one of the conditions for any future Russian support,” Vladimir Osakovskiy, an analyst at Bank of America Corp. in Moscow, said by e-mail.

 

“There is strong political incentive to continue to repay external debt in order to keep alternative, other-than-Russia refinancing options open.”

The slow response...

As Bloomberg reports, Belarus Leader Says He Meant ‘Refinance’ Not ‘Restructure’ Debt

 

“Please calm down,” Belarusian President Alexandr Lukashenko says during annual news conference in Minsk, addressing bondholders.
Belarus has enough money to pay its debts in full

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Thu, 01/29/2015 - 21:53 | 5723156 Soul Glow
Soul Glow's picture

Please calm down.  This is bullish.

Thu, 01/29/2015 - 21:59 | 5723192 SumTing Wong
SumTing Wong's picture

She said just the tip, but he misunderstood...

Thu, 01/29/2015 - 23:14 | 5723471 Lets Buy The Dip
Lets Buy The Dip's picture

haha she did. 

With the USD skyrocketing,  the GAS price which have been plummeting, SEE HERE  => http://bit.ly/1B4K0wk

It seems like each time I fill up, the price has crashes some more. I have never seen this, and the stock market is all over the place. 

What is happening people. Some huge manipulations going on the last 3 months, {well ok, as in FOREVER}

Thu, 01/29/2015 - 21:52 | 5723157 RaceToTheBottom
RaceToTheBottom's picture

Whenever I talk about refinancing my house, my bonds go to hell as well..

Thu, 01/29/2015 - 21:52 | 5723167 Yen Cross
Yen Cross's picture

 Anyone up for a friendly game of Dominoes?

Thu, 01/29/2015 - 21:53 | 5723170 5e0V2a3
5e0V2a3's picture

Lukashenko owes all his financial and political accumen to the careful tutelage of Vladimir Putin, Mr. Lukashenko's idol.

How many Zero Hedgers are leaving America's shores for idyllic Belarus in 2015? 

C'mon now, don't be shy!

Thu, 01/29/2015 - 22:08 | 5723187 RaceToTheBottom
RaceToTheBottom's picture

Armchair cowboys, all of them.

All Hat and no cattle.

Thu, 01/29/2015 - 22:07 | 5723216 Gaius Frakkin' ...
Gaius Frakkin' Baltar's picture

Oh look, another new troll who only comments on Russia. Did Langley run out of real names for its shill accounts?

Thu, 01/29/2015 - 22:08 | 5723224 Yen Cross
Yen Cross's picture

  The farce is strong today. lol

Thu, 01/29/2015 - 22:08 | 5723229 Gaius Frakkin' ...
Gaius Frakkin' Baltar's picture

Reduced to random alphanumeric strings... how fucking sad.

Thu, 01/29/2015 - 21:56 | 5723175 5e0V2a3
5e0V2a3's picture

The Poles recognize what Ukraine and Georgia have already come to understand: that Russia is trying to cobble together what it can of the failed Soviet state.  It was Vladimir Putin, after all, that wistfully remarked that "the greatest catastrophe of the 20th century was the breakup of the Soviet Union." 

In other words, the greatest catastrophe of the 20th century wasn't the 60 million lives lost during WWII, nor was it the tens of millions that died during the Spanish influenza pandemic in the early part of the 20th century.

Rather, the 'catastrophe' was that 300 million folks were liberated from a totalitarian regime and a command economy that together were responsible for untold human misery.

Putin's self-centered, myopic assessment would be laughable if it didn't negatively impact so many lives.

Vlad, we’re going to make you pay a heavy price for stealing Ukraine.  Your ruble will be worth virtually nothing, your economy will be trashed and your currency reserves eviscerated.

Thu, 01/29/2015 - 22:00 | 5723190 Yen Cross
Yen Cross's picture

  I guess the Russians all "fell over" and died when the Germans invaded during that 1941-45 skirmish?

Thu, 01/29/2015 - 22:34 | 5723201 RaceToTheBottom
RaceToTheBottom's picture

"Vlad, we’re going to make you pay ....."

 

You of course mean before our WS Banksters and their local replacement lackie team try to come in and take everything for cents on the dollar...

Right?

Thu, 01/29/2015 - 22:00 | 5723189 NoDebt
NoDebt's picture

Oops.  Wars have started over less.

Wonder who bought in at 65?

Thu, 01/29/2015 - 22:02 | 5723197 Yen Cross
Yen Cross's picture

    Much less. I think Putin has been extremely "well behaved".

Thu, 01/29/2015 - 22:04 | 5723212 Urban Redneck
Urban Redneck's picture

If they were smart and aggressive, they would have front-run their own "correction announcement" and started "refinancing" early.

Thu, 01/29/2015 - 22:03 | 5723211 SpasticGramps
SpasticGramps's picture

Stick that semantics in your pipe and smoke it bitchez.

Thu, 01/29/2015 - 22:15 | 5723242 Bennie Noakes
Bennie Noakes's picture

Nice goin' guy! It will be really easy to refinance now that your misstatement (or was it a Freudian slip?) has kicked interest rates up by 6 percentage points.

Thu, 01/29/2015 - 22:26 | 5723275 Joebloinvestor
Joebloinvestor's picture

Kinda funny how quickly a bond asset turns into an unfunded liability.

Depends on what side of the tellers window you're on.

Fri, 01/30/2015 - 02:45 | 5723946 noben
noben's picture

I said it before and I'll say it again:

Belarus is a prime target and headed for Maidan II. Feels like 1938.

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