Banks’ demand for benchmark bonds brought UAH 23.5B to the budget.

On January 10, the Ministry of Finance attracted UAH 23.52B to the state budget from the sale of domestic government bonds due to growing demand from banks. According to the Ministry of Finance, UAH 20.54B was immediately raised from selling one-and-a-half-year bonds at 19.24% per annum. This is currently the only issue of benchmark OVDP bonds, which the National Bank has allowed banks to include in their coverage of required reserves beginning January 11. In addition, the Ministry of Finance placed six-month hryvnia bonds for UAH 332.56M at a 14% rate and two-year OVDP bonds for UAH 26.51M at 19.5%. The Ministry of Finance also raised $40.17M from the sale of six-month dollar bonds with a yield of 4.25% per annum and €29.37M from the sale of six-month government euro bonds at 3% per annum.