30 August 2022, Tuesday, 16:01 102

Payments On Repayments Of Government Bonds Since Beginning Of War Exceed Borrowing By UAH 59.1 Billion

Редактор: Tetiana Herasimova

During Russia's full-scale war against Ukraine, the amount of funds paid by the government for the repayment of domestic debt instruments by UAH 59,073.9 million exceeds the amount of funds raised in the state budget at auctions for the sale of domestic government loan bonds.

This is evidenced by the data of the depository of the National Bank, Ukrainian News Agency reports.

From February 24 to August 28, 2022, the government transferred UAH 147,500.7 million, USD 1,539.4 million and EUR 168.0 million to repay domestic government loan bonds, and raised UAH 98,939.2 million, USD 908.7 million and EUR 384.3 million from the placement of new domestic debt instruments at auctions.

Since April, the amount of funds received by the government at auctions for the sale of government bonds has been lower than the amount of repayments on the relevant 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; since the beginning of August - 28,384.5 million.

Over the past two weeks, the yield on government bonds placed at auctions has not changed.

In total, during martial law, the Ministry of Finance increased rates on hryvnia-denominated government bonds placed for 6, 12 and 14 months (up to 12.0%, 14.0% and 16.0% per annum, respectively), as well as rates on dollar government bonds for 3, 6 and 12 months (up to 3.5%, 4.0% and 4.5% per annum, respectively).

The yield on hryvnia government bonds placed for 3 months has not changed since the beginning of the full-scale war and amounted to 9.5% per annum, as well as on war government bonds denominated in euro (2.5% per annum for all maturities).

As of August 29, the largest portfolio of relevant securities is held by banks - primary dealers.

The second largest is a portfolio of war bonds, concentrated by citizens and business of Ukraine.

It constitutes:

- UAH 13,674.7 million (15.2% of the total volume of war government bonds, denominated in hryvnia);

- USD 177.1 million (20.5% of the total volume of war government bonds, denominated in dollars);

- EUR 145.1 million (51.4% of the total volume of war government bonds, denominated in euro).

Non-residents own war bonds worth more than UAH 1,350.1 million and USD 2 million.

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