NBU Makes 2nd Redemption Of War Bonds In Amount Of UAH 20 Billion

The National Bank made a second redemption of war bonds in the amount of UAH 20 billion.

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

The Board of the National Bank on April 12, 2022 decided to carry out the second redemption of the government's war bonds in the amount of UAH 20 billion.

Consequently, as of April 13, the portfolio of war bonds owned by the National Bank is UAH 40 billion.

Supporting the budget by the National Bank is a necessary step, given the need to ensure the proper rebuff of Russia's large-scale armed aggression against Ukraine.

At the same time, the NBU, as it was declared, will finance only critical government spending in a limited amount and in a transparent way.

This approach will minimize the risks of imbalance of inflation expectations, high inflation and disruption of macro-financial stability.

In addition, this will contribute to a faster return of the functioning of the economy and financial markets to market foundations, and will not pose a threat to the process of European integration of Ukraine and cooperation with international financial donors.

Support from the National Bank is still not the main source of funding for government spending.

Despite the hostilities, Ukrainian enterprises are gradually resuming their activities and continue to pay taxes, and citizens transfer significant amounts in support of the army.

Ukraine also receives important financial, military and humanitarian support from international partners.

As Ukrainian News Agency earlier reported, on March 1, the Ministry of Finance placed war bonds for UAH 8.1 billion, on March 8 - for UAH 6.7 billion, on March 15 - for UAH 5.1 billion and USD 12 million, on March 22 - for UAH 6 billion, on March 29 - for UAH 3.3 billion, on April 5 - for UAH 5.6 billion.

The Cabinet of Ministers intends to gradually issue war bonds up to UAH 400 billion.

President Volodymyr Zelenskyy recommends that the National Bank buy war bonds.

On March 8, the National Bank bought war bonds worth UAH 20 billion and, if necessary, will continue to finance critical government spending under martial law.

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