09 August 2022, Tuesday, 11:06 146

Since war start, government bond repayment exceeds borrowings by UAH 40.4 billion

Редактор: Roman Vaniyan

The government's payments for repayments of government domestic loan bonds since the beginning of the full-scale war by UAH 40.4 billion exceeded borrowings from the sale of the relevant securities at auctions.

That follows from a statement by National Bank of Ukraine, reports Ukrainian News Agency.

During the full-scale war of Russia against Ukraine, the amount of funds paid by the government for the repayment of domestic debt instruments exceeds the amount of funds raised to the state budget at auctions for the sale of government bonds by UAH 40,372.9 million.

In particular, from February 24 to August 7, 2022, the government allocated UAH 124,997.2 million, USD 1,539.4 million, and EUR 168.0 million to the repayment of domestic government bonds, and raised UAH 95,168.9 million, USD 908.7 million, and EUR 383.5 million from the placement of new domestic debt instruments at auctions.

Since April, the volume of funds received by the government at auctions from the sale of Government bonds was lower than the amount of repayments for the corresponding instruments.

In particular:

- in April, the negative balance of the government's internal debt transactions amounted to UAH 2,850.5 million;

- in May – UAH 411.0 million;

- in June – UAH 20,997.2 million;

- in July – UAH 17,095.7 million;

- from the beginning of August – UAH 9,683.5 million.

Over the past week, the yield on Government bonds placed at auctions did not change.

In general, during the martial law, the Ministry of Finance increased the rates on hryvnia-denominated 12- and 14-month Government bonds (to 14.0% and 16.0% per annum, respectively), as well as the rates on dollar-denominated Government bonds, 3, 6, and 12 months (up to 3.5%, 4.0% and 4.5% per annum).

In contrast, the yield on short-term hryvnia-denominated government bonds has not changed since the beginning of the full-scale war and was between 9.5% and 10% per annum, as well as on military government bonds denominated in euros (2.5% per annum for all maturities).

As of August 8, 2022, banks – primary dealers – traditionally hold the largest portfolio of relevant securities.

The second in terms of volume is the portfolio of war bonds, concentrated by citizens and businesses of Ukraine.

It consists of:

- UAH 12,880.8 million (14.9% of the total volume of purchased military government bonds denominated in hryvnias);

- USD 172.4 million (20.0% of the total volume of war bonds denominated in dollars);

- EUR 138.7 million (49.3% of the total volume of Government bonds denominated in euros).

War bonds worth more than UAH 1,621.8 million and USD 2 million are owned by non-residents.

As reported by Ukrainian News Agency, on March 22, 2022, the National Bank began publishing statistics of the NBU depository on war bonds on a weekly basis.