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NBU Depository: Government Repayments to Redeem Domestic Debt Instruments Exceed Borrowings through Auctions to Sell Domestic Government Debt Securities by UAH 34.1 Billion

NBU Depository: Government Repayments to Redeem Domestic Debt Instruments Exceed Borrowings through Auctions to Sell Domestic Government Debt Securities by UAH 34.1 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 34,128.5 million.       

Specifically, in five months of a full-scale war, the Ukrainian government spent UAH 105,798.4 million, USD 1,539.4 million, and EUR 168 million to redeem domestic government debt securities. Instead, UAH 87,759.6 million, USD 858.7 million, and EUR 283.4 million were raised from placement of new debt instruments in the domestic market.    

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

  • 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 20,534.7 million from 1 July through 24 July.

At the previous auction for the sale of war bonds, held on 19 July 2022, the Ministry of Finance started raising rates on hryvnia domestic government debt securities: interest rates on 12-month hryvnia bonds increased to 14%. However, yields on other hryvnia bonds have not changed and made 9.5%, 10%, and 11.5% per annum for maturities of 3 months, 6 months, 14 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. 

As of 25 July 2022, primary dealer banks hold the largest portfolio of war bonds.

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

  • UAH 12,086.2 million (14.1% of the total value of purchased hryvnia-denominated war bonds)
  • USD 167.7 million (19.4% 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 1,401.8 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.

 

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Outstanding Military Domestic Government Debt Securities and the Number of Holders as of 25 July 2022
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