• 25/02/2024 19:32

In January, the government raised almost 33 billion from the sale of government bonds, and during martial law – 851 billion

According to the NBU Depository, in January 2024, the Ukrainian government raised almost UAH 33 billion in the equivalent of: UAH 13,361.3 million, $254.7 million and EUR 235.5 million from the placement of government bonds at auctions. During this period, $80 million and 251.5 million euros were allocated for repayment of domestic debt government securities. This was reported by the regulator's press service.

In January, the government raised almost 33 billion from the sale of government bonds, and during martial law - 851 billion

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During January, the Ministry of Finance's borrowings on the domestic debt market exceeded repayment payments by UAH 19,321.7 million in equivalent for domestic government loan bonds.

The rollover of investments in government bonds (the ratio of the par value of securities sold at auctions and redeemed in accordance with the terms of their issue of securities) for January is 203% at par in all currencies at the current official rate.< /p>

In total, from the beginning of a full-scale war until January 31, 2024, the government raised almost 851 billion UAH at primary auctions in the equivalent of:

    567,537.0 million UAH, $5,872.0 million, 1,948.6 million euros.

UAH 429,371.9 million, $6,215.7 million and EUR 1,502.2 million were allocated for repayment of government bonds.

“It was possible to activate the domestic debt market thanks to the joint efforts of the government and National Bank of Ukraine,” says the regulator’s message.

In particular, the NBU provided banks with the opportunity to cover up to 50% of the total volume of required reserves using benchmark government bonds from a list determined by the NBU and gradually expanded the corresponding list.

In addition, the NBU allowed non-residents to transfer funds received abroad from payment of interest on OVDPs after April 1, 2023, subject to compliance with the minimum continuous period of ownership of OVDPs until the receipt of interest.

Rates on OVDPs

In January 2024, the maximum yield of government bonds placed at auctions was 18.60% per annum in hryvnia, 4.66% per annum in US dollars, and 3.25% per annum in euros.

Detailed statistics< /h3>

Below are detailed statistics of the NBU Depository as of February 1, 2024, exclusively in relation to military government bonds that were placed at auctions.

The largest volume of these securities is still concentrated by banks—primary dealers. The second largest portfolio is the portfolio of military bonds owned by citizens and businesses of Ukraine. As of February 1, 2024, it amounted to:

    UAH 45,684.1 million or 28.6% of the total volume of purchased hryvnia military government bonds (as of January 1 – UAH 42,588.8 million or 28.4%) ; $1,119.2 million or 53.8% of the total volume of military government bonds denominated in dollars (as of January 1 – $1,011.9 million or 55.3%); 108.4 million euros or 17.1% of the total volume of government bonds denominated in euros (as of January 1 – 102.8 million euros or 17.4%).

The total portfolio of military bonds owned by individuals and legal entities as of February 1, 2024 amounted to UAH 92.1 billion in equivalent, compared to UAH 37.6 billion in equivalent as of February 1, 2023 – an increase of almost 2. 5 times.

The volume of military bonds of internal government loans owned by non-residents as of February 1, 2024 amounted to UAH 15,471.2 million, $24.2 million and EUR 0.1 million, having increased over the year (by compared to February 1, 2023) almost doubled. The Ministry of Finance did not repay military government bonds in January 2024.

minfin.com.ua

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