EU delays bond issue over Ukraine, ratings review- WATCH CLOSELY!
Watch this closely my friends!!!!
There are some lovely tricky hints in here that should be closely examined by those following the financial megalo-drama. This is VERY telling......
Question: Who controls the IMF money again? hmmmmmm...... and where is that money coming from?
Yes yes.... watch this closely!
EU delays bond issue over Ukraine, ratings review
IFR 2023 8 March to 14 March 2014 | By John Geddie
The European Union will delay its bond issue scheduled for next week, as it looks to finalise an aid package for Ukraine and seeks clarity from rating agency Moody’s, which is currently assessing the body’s creditworthiness, sources close to the discussions said on Friday.
....would that be the European Union's "creditworthiness"? hmmmmm
The €2.6bn bond sale, expected to be in a 10-year or 15-year maturity, was scheduled to be executed next week, but the EU has now indicated to banks that it will come after Moody’s rating decision on the supranational, which is due to be announced next Friday.
Some bankers speculated that the deal would not go ahead until there was further clarity on how funds earmarked for Ukraine would be factored into the EU’s existing borrowing programme.
“I would imagine that you would not want to be doing a deal with uncertainty around how much funding the EU will need for Ukraine,” said one head of public sector origination.
European Commission President Jose Manuel Barroso said last Wednesday that Europe was willing to provide €11bn in loans and grants to Ukraine over the next several years, matching an identical offer from Russia.
EU debt managers had previously stressed to its banking group that any financial support would not significantly increase its borrowing needs this year.
I'd really like to see their creative math on how that works out.
“If this financial support is confirmed, the funding plan for 2014 will be adequately updated but, in any case, will not influence substantially the level of EU debt outstanding,” the EU wrote in an email to bankers who had received a request for proposals for the upcoming bond issue late last week.
The EU’s proposed funding for 2014 totals €4.7bn of medium-term to long-term debt and €250m–€500m of private placements.
The body already has some exposure to Ukraine, through a €610m loan under its macro-financial assistance programme for non-EU countries with an IMF programme, and an additional €300m credit facility under its Euratom programme, a scheme devised to develop Europe’s nuclear industry.
The package for Ukraine announced on Wednesday includes €1.6bn in direct loans and €1.4bn in grants from the EU, €3bn from the European Investment Bank and €5bn from the European Bank for Reconstruction and Development.
... with strings attached of course.
Other money will be raised by leveraging funds available from the EU’s Neighbourhood Investment Facility, a fund set up to invest in projects in the EU’s neighbouring states.
The EU’s offer is contingent on the government striking a deal with the IMF on a longer-term aid package.
Posted by D ... Breaking The Silence at 19:22