It is believed that investing in government bonds is currently better than any alternative.
Investing in government bonds provides a net income without taxes and provides support to the country.
This was stated by the executive director of the Economic Discussion Club, economist Oleg Pendzin on air at KIEV24.
“Well, look, we always take into account the alternative cost, right? That is, you can keep it in anything. And what difference does it make now? If you keep it in a three-liter jar, well, it doesn't matter what kind of paper is in there. But if you think about the fact that there is inflation, inflation in dollars and euros, and this paper is constantly depreciating, then you need to think about where it is better to invest it, in what,” he said.
The expert notes that today the best option for investment is domestic government debt bonds (DGB) denominated in hryvnia. Since these bonds are not subject to personal income taxes and military tax, the investor receives net income – all income paid after all taxes have been paid. Therefore, when comparing alternative options, DGBs turn out to be a profitable solution for preserving and increasing capital.
“So, if you calculate, it turns out that domestic government debt bonds, or military bonds. That is, you do two things, kill two birds with one stone, and have a good commission, and help Ukraine, right, I understand? Not just a commission, you get a good income. A good income and help the country,” he said.
According to him, the yield from domestic government debt bonds (DGB) is currently even higher than if the money were saved in dollars in an account. He emphasized that DGB is the most profitable option for investment at the moment, as it brings better income compared to other ways of saving money. In addition, investments in DGB also support the state.
Let us recall that the National Bank explained how they want to curb inflation.