Russian economy ministry opposed to reviving GKO
STUTTGART. Nov 26 (Interfax) - Russia's Economic Development Ministry is opposed to bringing back short-term government bonds, or GKO, Economic Development Minister Alexei Ulyukayev said.
"It makes absolutely no sense [to bring back this instrument]. Constant novelties of some kind - this is completely superfluous. There's no demand for these novelties, and why do we just make the business community nervous, I don't understand," Ulyukayev told reporters.
Deputy Finance Minister Tatyana Nesterenko said earlier at a meeting of the Federation Council budget committee that her ministry was considering issuing short-term government bonds if needed.
"Starting this year we are creating repo, placement of budget funds even for one night. And probably we will again restore the instrument of GKO if necessary, because when you can place for one day it is necessary to have the ability to borrow for a very short period of time," Nesterenko said.
However, there are no concrete plans to issue such bonds yet, Nesterenko added.