Regular version of site
Skip to content
NBU Depository: Government Repayments to Redeem Domestic Debt Instruments Exceed Borrowings through Auctions to Sell Domestic Government Debt Securities by UAH 30.7 Billion

NBU Depository: Government Repayments to Redeem Domestic Debt Instruments Exceed Borrowings through Auctions to Sell Domestic Government Debt Securities by UAH 30.7 Billion

According to the NBU Depository, since russia launched its full-scale invasion of Ukraine, the amount redeemed by the government on domestic debt instruments has exceeded the volumes raised to the state budget through auctions to sell domestic government debt securities by UAH 30,689.5 million.        

Specifically, in five months of a full-scale war, the Ukrainian government spent UAH 112,201.6 million, USD 1,539.4 million, and EUR 168 million to redeem domestic government debt securities. In particular, on 27 July, the Ministry of Finance repaid an equivalent of UAH 6,403.2 million, including UAH 3,246.9 million paid to individuals and businesses.

Instead, UAH 92,056.7 million, USD 908.7 million, and EUR 383.5 million were raised from placement of new debt instruments in the domestic market.     

In March, the government raised UAH 10,664.8 million more through auctuions to sell domestic government debt securities  than it spent for redemption of such instruments, however, in subsequent months, the balance of the government’s domestic debt transactions was negative. Namely:

  • the redemptions of domestic debt instruments exceeded the amount raised through auctions to sell domestic government debt securities by UAH 2,850.5 million in April
  • by UAH 411.0 million in May
  • by UAH 20,997.2 million in June, and
  • by UAH 17,095.7 million in July. 

At the previous auction for the sale of war bonds, held on 26 July 2022, the Ministry of Finance continued to raise rates on hryvnia domestic government debt securities: the interest rate on 14-month hryvnia bonds increased to 16%. As previously reported, on 19 July the rate on 12-month hryvnia bonds was raised to 14%. 

However, yields on other hryvnia bonds have not changed and made 9.5% and 10% per annum for maturities of 3 months and 6 months, respectively. 

On 12 July, the interest rates on U.S. dollar-denominated domestic government debt securities issued through auctions were raised to 3.5%, 4.0%, and 4.5% per annum (maturities of 3 months, 6 months, and 12 months, respectively).   

The interest rate of war bonds in euro has not changed since the full-scale war started and has been 2.5% per annum (maturities of 3 months, 9 months, and 12 months).

Find below detailed statistics by NBU Depository on war bonds. offered through aouctions. 

As of 1 August 2022, primary dealer banks typically hold the largest portfolio of war bonds. 

The second-large portfolio is held by Ukrainians and domestic businesses. It comprises   

  • UAH 9,511.2 million (11.4% of the total value of purchased hryvnia-denominated war bonds)
  • USD 170.7 million (19.8% of the total value of U.S. dollar-denominated war bonds)
  • EUR 136.6 million (48.6% of the total value of euro-denominated war bonds).

Nonresidents hold over UAH 1,621.8 million in military domestic government debt securities.

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

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

For reference:

On 22 March 2022, the NBU began to publish weekly statistics of the NBU Depository related to war bond transactions. Follow the links below to review data as of

Differences between the amounts raised in auctions to sell war bonds and redemptions on domestic debt instruments are presented in U.S. dollar equivalent at the NBU’s official exchange rates.

Tags
Subscribe for notifications

Subscribe to news alerts