The high demand for hryvnia bonds allows lower rates.

On May 30, the Ministry of Finance raised UAH 11.29B for the state budget at the auctions for the sale of domestic state loan bonds. In addition, the state received UAH 5.64B from the sale of annual hryvnia bonds. The high demand for these government bonds made it possible to lower their interest rate from 18.5% to 18.27% per annum.

The Ministry of Finance also placed 1.5-year government bonds for UAH 928.27M at 19.5% and three-year reserve bonds for UAH 678.52M at 19.75% per annum. The state also raised $110.57M from placing nine-month government bonds in US dollars at 4.85%.

At the end of last week, the Ministry of Finance paid off a significant amount of government bonds. Consequently, the portfolio of bonds owned by non-residents decreased by UAH 11.6B on May 25.