The banking system of Ukraine retains the potential to increase investments in domestic government loan bonds (DGLB), but to implement it, it is necessary to begin developing individual investment strategies for banks, as suggested by the agreements reached within the framework of the program with the International Monetary Fund (IMF), believes the head of the National Bank of Ukraine Andriy Pyshny. Interfax-Ukraine writes about this.
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What the NBU head said
“I am not inclined to believe that this diagnoses some kind of problem, but, indeed, it may signal the need to concentrate our efforts and begin the strategy that is programmed within the framework of the memorandum with the International Monetary Fund — individual strategies,” Pyshny added.
According to him, these individual strategies involve, in particular, a thorough analysis of the ability of state-owned banks to take the most effective and expanded part in covering the needs of the state budget through their active participation in the domestic debt market. “This may require a certain revision, modification of the ownership policy and the definition of clear strategic guidelines for the state banking sector,” the head of the NBU believes.
Individuals have increased their investments in government bonds
As another example of realizing the potential for increasing investments in government bonds, he cited the growth of government bonds owned by individuals from UAH 30 billion at the beginning of 2023 to UAH 63 billion now.
- NBU Government Bonds Banks