NBU Buys War Bonds For UAH 30 Billion

The National Bank has bought war bonds for UAH 30 billion.

The NBU has said this in a statement, Ukrainian News Agency reports.

It is noted that budget support by the National Bank remains a necessary measure, given the significant defense, humanitarian and social needs in the context of the war unleashed by Russia.

The NBU's position on budget financing is unchanged - support from the regulator cannot be the main source of financing of government spending.

The National Bank is making efforts to stimulate market demand for relevant securities.

At the moment, the banking system of Ukraine has a significant potential to increase its portfolio of OVDPs, given its liquidity: hryvnia makes UAH 227 billion, currency - USD 7.2 billion.

In this regard, an important task is to intensify market attraction through the placement by the Ministry of Finance of OVDPs, in particular due to an increase in rates at levels that are more attractive to their buyers.

The intensification of market borrowing will minimize risks for the fiscal sector and maintain macro-financial stability and confidence in the NBU.

The National Bank also maintains close cooperation with the government to facilitate the attraction of funding from international organizations and partner countries.

As Ukrainian News Agency earlier reported, the NBU will strive for an early complete refusal to finance the state budget deficit and, while minimizing the risks of unbalancing the situation in the fiscal sector, will realize this desire.