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NBU Depository: Since Full-Scale Invasion, Ukraine’s Government Borrows an Equivalent of nearly UAH 395 Billion through Auctions to Sell Domestic Government Debt Securities

NBU Depository: Since Full-Scale Invasion, Ukraine’s Government Borrows an Equivalent of nearly UAH 395 Billion through Auctions to Sell Domestic Government Debt Securities

According to the NBU Depository, since russia launched its full-scale invasion of Ukraine through 31 March 2023, the government raised UAH 263,168.0 million, USD 2,714.2 million, and EUR 1,064.2 million from placement of domestic government debt securities through auctions and allocated UAH 261,572.3 million, USD 3,542.1 million, and EUR 662.6 million for redemption of domestic government debt securities.

In March 2023, the Ministry of Finance borrowed in the domestic debt market UAH 26.0 million more (in equivalent) than redeemed domestic government debt securities.

The NBU jointly with the Government of Ukraine put further efforts to revive the domestic debt market.

In particular, the NBU has allowed the banks to use benchmark domestic government debt securities from the NBU’s list, to meet up to 50% of their total required reserve ratios. From 11 March 2023 it has included six issues of securities, with three of them added in January and February 2023.

Over the period under martial law, the Ministry of Finance increased the interest rates on hryvnia domestic government debt securities, with the maximum yield reaching 19.75%  p.a., and on a number of U.S. dollar domestic government debt securities, with the maximum yield being 4.85%  p.a., and on euro war bonds, with the maximum yield of 3% p.a.

Today, everyone can purchase war bonds and strengthen the financial defense of Ukraine.

Find below detailed statistics by NBU Depository on war bonds offered through auctions, as of 1 April 2023.

Primary dealers – banks – hold the largest portfolio of war bonds.

The second-large portfolio of war bonds is held by Ukrainians and domestic businesses. In March it comprised:  

  • UAH 20,843.8 million or 27.0% of the total value of purchased hryvnia-denominated war bonds (UAH 23,182.8 million or 22.3% as of 1 March)
  • USD 690.5 million or 37.7% of the total value of U.S. dollar-denominated war bonds (USD 542.7 million or 40.3% as of 1 March)
  • EUR 49.3 million or 8.4% of the total value of euro-denominated war bonds (EUR 101.0 million or 17.2% as of 1 March). 

Nonresidents hold over UAH 6,552.1 million and USD 13.3 million in war bonds.     

It should be noted that UAH 27,072.8 million was paid out to redeem war bonds on 1 March 2023.

Find out more about the military domestic government debt securities here. The table presents data at the amortized face value.

For Reference

On 22 March 2022, the NBU began to publish weekly statistics of the NBU Depository related to war bond transactions. From the beginning of 2023, the NBU switched to monthly publication of relevant releases as of the first day of the month. Previous data are available by tag war bonds

 

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