Finance Ministry attracts record-breaking UAH 106.9 billion from government bonds in October

In October 2024, the Ministry of Finance of Ukraine attracted a record-breaking amount from the issue of government bonds - UAH 106.9 billion, equivalent to: UAH 83.4 billion and USD 569 million.

This is stated in the notification of the Ministry of Finance, Ukrainian News Agency reports.

Military bonds accounted for almost UAH 82.8 billion of the total volume of government bonds issued in October 2024.

The funds are directed to ensure the financial needs of the state in the conditions of martial law, including the expenses of the security and defense sector.

As of November 1, over UAH 1.76 trillion worth of government bonds are in circulation.

The largest share is with commercial banks (46.7%) and the NBU (38.5%).

The share of legal entities and individuals is 8.4% and 4.0%, respectively.

The share of non-residents is 1.3%, insurance companies - 1.1%, and territorial communities - 0.04%.

The weighted average yield of government bonds denominated in hryvnia was 15.6% in October, and 4.62% of those denominated in dollars.

The level of refinancing for January-October 2024 in all currencies was 158%.

For comparison, in the first 10 months of 2023, this indicator reached 145%.

In general, for January-October 2024, the Ministry of Finance of Ukraine attracted UAH 497.8 billion equivalent from the placement of government bonds at auctions.

During the martial law - more than UAH 1.3 trillion in equivalent.

As Ukrainian News Agency earlier reported, the Ministry of Finance previously announced that military bonds are primarily a tool for supporting the state budget during a full-scale invasion of the russian federation, and not a tool for maximizing income from investment activities, therefore military bond rates remain fixed.

The Ministry of Finance fulfilled the plan for borrowing to the state budget by 67.3% and attracted UAH 1,261.1 billion in 2022.

Actual state borrowings to the general fund of the state budget for 2023 amounted to UAH 1.68 trillion, or 73.7% of the planned for this period.