Belarus pays off $43.75 million coupon on five-year Eurobond

Belarus said on Friday it had paid a coupon on its five-year Eurobond, moving to calm markets after President Alexander Lukashenko spoke of a possible sovereign debt restructuring this year. The finance ministry said it has paid off a $43.75 million coupon on its five-year Eurobond, issued in August 2010.
On Thursday, President Alexander Lukashenko spooked bond markets by speaking of a possible restructuring of Belarussian foreign debt falling due this year, then softened his comments to refer only to refinancing. The finance ministry also said it was not considering restructuring. "Those investors who (on Thursday) succumbed to unjustified panic and rushed to get rid of Belarussian Eurobonds made a serious mistake," Pavel Ladik, head of government debt at the finance ministry, said in written comments. Belarus has to repay some $4 billion this year and Minsk has said that it wants to repay three-quarters of the debt from domestic sources and raise the remaining $1 billion on the debt market, including a possible new Eurobond placement.