UPDATE 1-Slovaks see relatively good mkt mood for eurobond

Published 10/01/2010, 09:27 AM
Updated 10/01/2010, 09:32 AM

(Adds Miklos, Debt Agency quotes, details)

BRUSSELS/BRATISLAVA, Oct 1 (Reuters) - Slovak Finance Minister Ivan Miklos said on Friday the situation on financial markets is relatively good for the 15-year eurobond his country plans to place in the coming days.

Miklos, a fiscal hawk in the centre-right government and in charge of an ambitious fiscal consolidation plan, did not say which banks will be involved in the issue.

"At the moment the situation on the market is relatively good, that's the reason why we try to do it in these days," Miklos told reporters during a meeting of European Union finance ministers in Brussels.

Slovakia, the euro zone's poorest member, last month raised its gross borrowing plan for this year to around 9.5 billion euros from 6-8 billion euros, as it needs to cover a larger than expected fiscal deficit, estimated at 7.8 percent of GDP.

The finance ministry's Debt and Liquidity Management Agency (ARDAL) chief, Daniel Bytcanek, told Reuters last month the bond will initially be offered as a syndicated bond and further tranches will be offered at domestic auctions.

A bond with a 7-year maturity is an alternative option.

"We prefer a 15-year bond and we plan to offer 1 billion euros or more in the initial offer," Tomas Kapusta, head of ARDAL's debt department, told Reuters on Friday. "This is aimed to pre-finance for the next year."

The cabinet has promised to cut the fiscal deficit to 4.9 percent of GDP next year, and estimated the country's gross borrowing in bonds and treasury bills in 2011 at around 8 billion euros. (Reporting by Krista Hughes and Martin Santa, editing by Tim Pearce)

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