It seems that the government decided to sell sovereign bond of the amount US$500 million, for the first time of such in the history of the country, in the international stock market, even at a higher interest rate.
Reasons:
1. The government (in other words, balance of payment) is suffering for the acute shortage of foreign currency reserves;
2. It seems that the government is not getting the loan (US$ 1 billion) from the IMF soon as it expected earlier.
Here is the link on the news.
Comment: One common economic fact that our economists should know: interest rate is not a matter of concern when there is excess demand for money. This is a classic example.
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