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by
RUSSIAN EMIRATES
placing themon thedomesticmarket at a low
price and thuswashing away the shares of
existing shareholders.
Othermain reasons of the increaseof the
volumeof issued corporatebonds over thepast
years included the following circumstances. First
of all, the situationon creditmarket improved
primarilydue to thedecreaseof theNational
Bank’s rate and theensuingdecreaseof credit
funds costs. This improvement stimulated the
interest of enterprises to the cheaper loan
funds rather thanpromoted corporatebinds as
stockmarket instrument. Eenterprises began to
borrow credit fundsmore actively. Secondly, the
increaseof bank assets due to the increaseof the
population’s andenterprises’ funds on accounts
also resulted in the increaseof themarket’s
interest towards thebonds.
At the same time, the issueof corporate
bonds also increased– from0.07billionhryvnias
in2000, to8.9billionhryvnias in2005. Almost
ahalf the corporatebonds issued in2005, is
representedby thebinds issued for financingof
residential construction inUkraine, due to the
banon theuseof investment contracts for funds
borrowing in this sphere.
Development of corporatebondsmarket
resulted in:
•More activeoperationon the stockmarket
of Ukraineof banking institutions acting as
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