11 October 2022, Tuesday, 11:09 303

Ministry of Finance raises UAH 145.5 billion equivalent from sale of Government bonds since war start

Редактор: Roman Vaniyan

Since the start of Russia's full-scale war against Ukraine, the government has raised UAH 100,205.9 million, USD 974.3 million and EUR 468.4 million from the placement of domestic government loan bonds at auctions and sent UAH 149,216.0 million, USD 1,539, 4 million and EUR 168.0 million to repay the debt.

This follows from a statement by the NBU depository, the Ukrainian News agency reports.

From April to August, the balance of the government's internal debt transactions was negative.

In September, the amount of funds raised by the government at auctions for the sale of government bonds exceeded the costs of repayment of domestic debt instruments by UAH 1,051.7 million, and in the period from October 1 to 9 - by UAH 44.5 million.

During the martial law, the Ministry of Finance increased yields on a number of hryvnia-denominated securities (the maximum yield was 16% per annum), as well as on all dollar-denominated government bonds (the maximum yield was 4.5% per annum).

The rates for hryvnia war bonds for 3 months, as well as for domestic government loan bonds denominated in euros, have not yet changed and are 9.5% per annum and 2.5% per annum, respectively.

The largest portfolio of relevant securities as of October 10 is held by banks - primary dealers.

The portfolio of war bonds, concentrated by citizens and businesses of Ukraine, is the second largest in volume and consists of:

- UAH 14,565.8 million or 16.2% of the total volume of purchased hryvnia military domestic government loan bonds (as of October 3 – UAH 14,465.3 million or 16.1%);

- USD 201.8 million or 22.9% of the total volume of military government bonds denominated in dollars (as of October 3 – USD 201.1 million or 22.8%);

- EUR 147.7 million or 51.7% of the total volume of domestic government loan bonds denominated in euros (as of October 3 – EUR 148.5 million or 51.9%).

War bonds worth more than UAH 1,250.9 million and USD 2 million are owned by non-residents.

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

On September 16, the Cabinet of Ministers introduced the possibility to purchase war bonds through the Diia application.

Prime Minister Denys Shmyhal noted that war bonds have become one of the extremely important financing tools for our army. During the full-scale war, Ukrainian businesses and citizens have already purchased war bonds worth more than UAH 100 billion.