Debut OFZ issue for retail investors may total 20 bln rubles - Storchak
MOSCOW. Oct 19 (Interfax) - The volume of a debut issue of federal loan bonds (OFZ) for retail investors that the Finance Ministry plans to issue before year-end might total 20 billion rubles, Deputy Finance Minister Sergei Storchak told journalists.
"The sum is the result of bank-agent analysis. The figure named by the issuer is most frequently an exercise in wish fulfillment, while the actual decision is made at the last moment. We would like to place 20 billion rubles at least," Storchak said. The Finance Ministry previously put the size of the issue at 30 billion rubles.
Preparations for the issue are "proceeding rapidly," he said.
"I think that we will manage in time this year, at least, that goal has been set," he said.
On Monday, Storchak said that this year "it will probably be possible to make an offering" of such obligations. The question is what the demand for them will be.
One Russian region has presented material about selling regional obligations to the public "successfully and for a long time."
"They have experience and this is encouraging, it means the public is looking at what is most convenient for it. On the other hand, banks have begun offering various products... It's tough to compete. Perhaps, for some portion of the population, this will be more attractive," he said.
On Wednesday, asked why the public needed this instrument, Storchak said: "It is neither here nor there in terms of financing sources, but our national financial market is forming, we have a very strong dependence of all economic agents on commercial bank lending. In this sense, we and Europe differ markedly from the U.S., where everything is much more diversified - the financial market there even provides startups. These are small steps, new instruments, new buyers giving an opportunity to develop the market."
