Finance

Monday, June 10

The World Bank has provided Ukraine with $34B in direct budget support and will help modernize its housing policy according to EU standards.

The World Bank has provided Ukraine with $34B in direct budget support and will help modernize its housing policy according to EU standards. According to the Ministry of Finance, since the beginning of the full-scale invasion $34B in direct budget support has been obtained within the framework of World Bank mechanisms. In 2022-2023, five n...

Friday, June 7

The EU is discussing using funds from the bloc’s budget to guarantee a loan to Ukraine but is leaning toward the US proposal.

The EU is discussing using funds from the bloc’s budget to guarantee a loan to Ukraine but is leaning toward the US proposal. The European Commission is deliberating the use of future interest from frozen Russian assets to fund a multi-billion-dollar loan to Ukraine and guaranteeing this money through a seven-year EU budge...

Ukraine has finally ratified the agreement with the EU on financing under the Ukraine Facility program: it is expected to attract €1.89B in June.

Ukraine has finally ratified the agreement with the EU on financing under the Ukraine Facility program: it is expected to attract €1.89B in June. Ratification of the agreement will include the necessary control and audit mechanisms for the €50B instrument that is in place from 2024 through 2027, subject to the successful implementation of the P...

The National Bank has summarized the economic results for April-May.

The National Bank has summarized the economic results for April-May. Here are the leading indicators: Inflation in April remained the same as in March – 3.2% annually. This was facilitated by a drop in prices for raw food products and persistent inflationary expe...

Thursday, June 6

Ukraine’s state budget revenues have been decreasing for four months in a row.

Ukraine’s state budget revenues have been decreasing for four months in a row. In May 2024, the general fund of the state budget received ₴151.8B, which is less than in February, March, and April, the Ministry of Finance notes. According to the results from the five completed mo...

Where will Ukrainian energy companies direct ₴50B in revenue from increased electricity tariffs?

Where will Ukrainian energy companies direct ₴50B in revenue from increased electricity tariffs? Analysts have calculated that the increase in consumer electricity prices will generate an additional ₴50B for state energy companies Energoatom and Ukrhydroenergo in 2024. The tariff increase will al...

Ukraine needs an external financing plan until 2027.

Ukraine needs an external financing plan until 2027. To overcome macroeconomic risks and maintain macroeconomic stability, Ukraine and its partners from the Donor Coordination Platform must develop a long-term strategy for external financing and support...

Tuesday, June 4

Businesses are being offered grants for innovative production and to move their operations to safer regions.

Businesses are being offered grants for innovative production and to move their operations to safer regions. EIT Manufacturing Accelerate is a program that helps scale and accelerate the transformation of industrial start-ups into influential players in the European manufacturing ecosystem. The program suppo...

In the first quarter, the profits from large and medium Ukrainian businesses reached ₴319.6B, and the share of unprofitable enterprises decreased to 26.7%.

In the first quarter, the profits from large and medium Ukrainian businesses reached ₴319.6B, and the share of unprofitable enterprises decreased to 26.7%. According to the State Statistics Service, large and medium-sized enterprises generated a positive financial result before taxation for the first quarter of 2024. It amounted to ₴253.6B, compared to ₴...

Monday, June 3

The G7 and the EU are working on restrictions for international banks that assist Russia.

The G7 and the EU are working on restrictions for international banks that assist Russia. G7 countries and the EU are studying ways to increase pressure on banks from third countries that help the Russian Federation circumvent sanctions. Currently under discussion are restrictions aimed at...

The State Bank of Ukraine will provide exporters with loans of up to ₴10M covered by ECA insurance.

The State Bank of Ukraine will provide exporters with loans of up to ₴10M covered by ECA insurance. PrivatBank and the Ukrainian Export Credit Agency (ECA) will finance exporting producers to purchase raw materials and equipment. The ECA will insure the bank’s risk for loans granted to fund th...

Friday, May 31

Ukraine and the US have agreed on financial assistance in the form of a loan.

Ukraine and the US have agreed on financial assistance in the form of a loan. The Cabinet of Ministers of Ukraine approved an agreement between Ukraine and the US on attracting financial aid for the Ukrainian budget within a support package totaling more than $60B. Economic ass...

The US hopes Ukraine will restructure its debt by autumn.

The US hopes Ukraine will restructure its debt by autumn. The US hopes that Ukraine will be able to reach an agreement with private creditors on debt restructuring by September 1, US Deputy Treasury Secretary Wally Adeyemo while in Kyiv. “This is one o...

Ukraine begins to insure investors against military and political risks.

Ukraine begins to insure investors against military and political risks. Export credit agencies (ECA) have started accepting applications for investment insurance against military and political risks. The agency will offer two insurance products – direct investment insuran...

Thursday, May 30

The EBRD will support Ukraine with €1.5B annual contributions until the end of the war.

The EBRD will support Ukraine with €1.5B annual contributions until the end of the war. The European Bank for Reconstruction and Development has provided €4B in project financing across all sectors of Ukraine’s economy since the beginning of the full-scale invasion and will continu...

Wednesday, May 29

The world’s debt has already exceeded $315T and continues to grow.

The world’s debt has already exceeded $315T and continues to grow. According to the Institute of International Finance (IIF), global debt reached $315T in the first quarter of 2024, almost three times more than the expected global GDP of $109T in 2024. The world has ...

Tuesday, May 28

Ukraine’s allies are working on another option for financing aid – a “reparation loan.”

Ukraine’s allies are working on another option for financing aid – a “reparation loan.” In addition to confiscating Russian assets or lending money to Kyiv using these assets, there is a third option – a so-called reparation loan. Under this approach, Ukraine could borrow money fro...

These are the main trends in Ukraine’s bank deposits.

These are the main trends in Ukraine’s bank deposits. According to financiers, the decreasing yields on hryvnia deposits will continue until the end of May. However, despite this, hryvnia deposits remain attractive to citizens due to their passive income...

The largest pharmaceutical company in Ukraine received €12M from Ukrainian and Latvian banks to construct a plant in Spain.

The largest pharmaceutical company in Ukraine received €12M from Ukrainian and Latvian banks to construct a plant in Spain. Thanks to the West Bridge program, Ukrainian businesses continue to develop in EU countries. Another of the program’s significant projects is financing a new pharmaceutical plant for the largest Ukrai...

Monday, May 27

Ukraine agrees on the next steps with the IMF mission and expects three more tranches totaling $4.5B this year.

Ukraine agrees on the next steps with the IMF mission and expects three more tranches totaling $4.5B this year. The Ukrainian government has synchronized with the mission of the IMF in further joint steps to restore economic growth and carry out reforms. The key areas are the restoration and decentralization of...

The G7 supports the plan to use Russian assets for Ukraine’s future security, and the World Bank is ready to manage the loan.

The G7 supports the plan to use Russian assets for Ukraine’s future security, and the World Bank is ready to manage the loan. The G7 finance ministers at a meeting in Italy supported the US’ idea to provide Ukraine with a loan secured by profits from frozen Russian assets. The $50B loan will be repaid through the profits fro...

The NBU explains what the confiscation of Russian assets depends on and how much can be obtained from their profits in 10 years.

The NBU explains what the confiscation of Russian assets depends on and how much can be obtained from their profits in 10 years. The European Central Bank (ECB) cannot confiscate frozen Russian assets, said NBU head Andriy Pyshnyi. As he explained, confiscation requires a consolidated decision and a legal basis. “It is ab...

Ukraine announces its expectations for international financial assistance for this year.

Ukraine announces its expectations for international financial assistance for this year. Since the beginning of the full-scale war, Ukraine has attracted more than $85B in external financing, Prime Minister Denys Shmyhal said. “Over ₴1T was attracted to the budget thanks to military...

Friday, May 24

France supports the US proposal for a $50B loan to Ukraine, and Germany is ready to transfer profits to Ukraine.

France supports the US proposal for a $50B loan to Ukraine, and Germany is ready to transfer profits to Ukraine. The French government has given its support to the US government’s proposal to use frozen Russian assets, which increases the chances of reaching a preliminary agreement at the meeting of G7 finance m...

The G7 agrees on the details of providing Ukraine with a $50B loan secured by Russian assets.

The G7 agrees on the details of providing Ukraine with a $50B loan secured by Russian assets. The G7 countries agree with the US’ plan to use frozen Russian assets. The move would provide Ukraine with up to $50B in financing and help protect it from political shifts on both sides of the Atlant...

Ukrainian businesses cite the risks of discontinuing currency liberalization measures.

Ukrainian businesses cite the risks of discontinuing currency liberalization measures. As stated by analysts, the continuation of currency liberalization is absolutely necessary. Expanding the established limits and conditions for paying dividends and interest on existing debts remains ...

Thursday, May 23

Problems in Ukraine and uncertainty about future financial support from the US are pushing allies to squeeze the maximum out of Russian assets.

Problems in Ukraine and uncertainty about future financial support from the US are pushing allies to squeeze the maximum out of Russian assets. The EU has taken a small step towards fulfilling its pledge to “make Russia pay” for the war in Ukraine, agreeing to use the proceeds from frozen Russian assets to provide Kyiv with about ...

Ukrainian defense enterprises are eligible to receive up to ₴2M in grant funds for new military projects.

Ukrainian defense enterprises are eligible to receive up to ₴2M in grant funds for new military projects. Ukrainian military equipment and defense system developers can now apply for grants of ₴500,000, ₴1M, or even ₴2M to implement their initiatives. Funding will be provided through the Brave1 grant prog...

Wednesday, May 22

Germany will support the US plan to provide Ukraine with $50B in aid secured by revenue from frozen Russian assets.

Germany will support the US plan to provide Ukraine with $50B in aid secured by revenue from frozen Russian assets. Germany’s agreement could be a crucial step that moves Washington and its allies closer to receiving a major new aid package for Kyiv and secures US support regardless of the outcome of November...

The EU approves the transfer of revenues from frozen Russian assets to Ukraine, 90% of which will go to the military.

The EU approves the transfer of revenues from frozen Russian assets to Ukraine, 90% of which will go to the military. On May 21, the Council of the EU agreed on a conservative plan for the use of Russian assets for the benefit of Ukraine. It will allow Ukraine to receive €3B this year, the Minister of Foreign Affairs...

Thanks to OVDP, the return on the Ukrainian banks’ assets increased to 11.6%.

Thanks to OVDP, the return on the Ukrainian banks’ assets increased to 11.6%. According to the National Bank, the return on assets increased by 0.2 percentage points on average over the last year, up to 11.6% in the first quarter of 2024, primarily due to revenues from OVDP ...

Ukraine’s bond market: Investors focus on longer maturities.

Ukraine’s bond market: Investors focus on longer maturities. Last week, investors’ interest in UAH bonds with longer maturities sharply increased as they tried to lock in current YTMs for longer. Taking advantage of the high demand, the Ministry of Financ...

Tuesday, May 21

The G7 will grant Ukraine a €30B loan secured by Russian assets.

The G7 will grant Ukraine a €30B loan secured by Russian assets. This week, the finance ministers of the G7 countries will discuss the legality of using €270B in frozen assets belonging to the Russian Federation as collateral to provide Ukraine with a €30B loan. Wa...

Renovation of the energy system: Ukraine will develop smart power grids, and banks will support projects to restore energy generation.

Renovation of the energy system: Ukraine will develop smart power grids, and banks will support projects to restore energy generation. The Ministry of Energy of Ukraine approved the road map for developing smart networks to automate and implement digital solutions at all levels of the energy system. It is noted that the restoration o...

The Polish State Bank will finance investment projects in Ukraine.

The Polish State Bank will finance investment projects in Ukraine. Bank Gospodarstwa Krajowego (BGK) plans to start providing loan guarantees for investment projects in Ukraine, said the Chairman of the Board of the Polish Investment Agency (PAIH) Andrzej Dycha. R...

Bank lending to businesses continues to grow in Ukraine.

Bank lending to businesses continues to grow in Ukraine. Banks have been increasing corporate lending for three quarters in a row, according to the Review of the Banking Sector for the first quarter. It is noted that the demand for business loans outside th...

The deposit yield for businesses and individuals in Ukraine has fallen.

The deposit yield for businesses and individuals in Ukraine has fallen. According to the Banking Sector Survey for the first quarter, banks reduced deposit rates for both commercial and consumer loans. The national bank notes that since the beginning of the year, the disc...

Monday, May 20

The G7 will support the EU’s use of profits from frozen Russian assets but still refuses their confiscation.

The G7 will support the EU’s use of profits from frozen Russian assets but still refuses their confiscation. G7 finance ministers will back an EU plan next week to use proceeds from frozen Russian assets to help Ukraine’s military efforts. The US proposed the outright confiscation of Russian assets, bu...

Piraeus Bank Executive: Ukraine’s banking system has shown outstanding resiliency, and international businesses should take note. The Ukrainian Banking Day in London gathered 150 finance executives from all over the world to listen to their colleagues who work in Ukraine and share their views on the financial sector’s cur...

MEP: Ukraine needs another €200B in financial aid from the EU to cover all necessary expenditures.

MEP: Ukraine needs another €200B in financial aid from the EU to cover all necessary expenditures. The EU should find an additional €200B to help Ukraine, as the €50B Ukraine Facility program does not solve all financing problems, said Viola von Cramon-Taubadel, a European Parliament member, during...

Friday, May 17

Austria created a €500M special fund to support businesses that export to Ukraine.

Austria created a €500M special fund to support businesses that export to Ukraine. The Ministry of Finance of Austria opened a special €500M credit fund in the Austrian Control Bank (OeKB) to support export operations with Ukraine during the next five years. “Russia has been a...

The EBRD will provide ProCredit Bank with a €70M guarantee for lending to Ukrainian businesses.

The EBRD will provide ProCredit Bank with a €70M guarantee for lending to Ukrainian businesses. The European Bank for Reconstruction and Development will provide guarantees for Ukrainian ProCredit Bank sufficient to support €70M in new lending for small and medium-sized enterprises. The EBRD gua...

Ukraine will soon launch a mechanism to insure investment loans against war risks.

Ukraine will soon launch a mechanism to insure investment loans against war risks. The Export Credit Agency will soon approve an investment credit insurance product, said Ruslan Hashev, head of the ECA board, at the My Export conference. Among the factors that determine the cost of ...

Thursday, May 16

Ukraine’s allies plan to introduce sanctions against banks that help the Russian Federation.

Ukraine’s allies plan to introduce sanctions against banks that help the Russian Federation. France and the Netherlands are pushing for EU sanctions against any bank in the world that helps the Russian military pay for weapons, goods, or technology. The proposal is being discussed as part of ...

Military risk insurance is now provided by almost all Ukrainian insurers.

Military risk insurance is now provided by almost all Ukrainian insurers. More and more Ukrainian insurers are offering protection against war risk, and their number is is almost equal to the entirety of the active insurance market, about 50 companies, said the director of ...

Wednesday, May 15

In the first quarter of 2024, Ukrainian banks increased their net profit by 18% from last year.

In the first quarter of 2024, Ukrainian banks increased their net profit by 18% from last year. During the first three months of the year, solvent financial institutions showed a ₴40.5B ($1.05B) net profit. “The main factors in profitability growth in annual terms are an increase in intere...

The NBU predicts that consumer price growth will accelerate moderately in the coming months,

The NBU predicts that consumer price growth will accelerate moderately in the coming months, although in April, it was lower than the regulator predicted. “The deviation from the forecast was provided by the dynamics of little-forecasted factors of a temporary nature, first of all, a sh...

Ukraine must pay $25.2B to service debt this year.

Ukraine must pay $25.2B to service debt this year. The Ministry of Finance has preliminarily estimated that in 2024 Ukraine will have to pay more than ₴1T ($25.2B) as part of its repayment and servicing of state debt. As of May 1, the total amount of ...

What does the NBU think about the new easing of currency restrictions and the return of currency extortion?

What does the NBU think about the new easing of currency restrictions and the return of currency extortion? NBU Chairman Andriy Pyshnyi said: “Our decisions are fully in line with our declared strategy of easing currency restrictions, transitioning to greater exchange rate flexibility and returning to...

For the first time, international insurance broker WTW will cover war risks of goods transported by land in Ukraine.

For the first time, international insurance broker WTW will cover war risks of goods transported by land in Ukraine. For the first time since the start of the full-scale war, Nasdaq-listed global insurance broker WTW has announced the launch of war risk insurance for overland cargo in Ukraine in partnership with Ukr...

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