are short-term zero coupon government bonds of the Russian Federation. Finance Ministry was the issuer of the bonds. GKO can be owned by Russian and foreign individuals and legal entities. GKO were issued as registered discount bonds in book-entry form. Central Bank of the Russian Federation acted as the general agent of the GKO issues. GKO were issued for periods ranging from several months to a year. The first issue of GKO was launched in May 1993. On August 17 1998, the government announced a technical default on GKO bonds, which were yielding 140% p.a. just before the crisis.
Example – Russia, 21159