Finance

Wednesday, March 20

Ukraine will receive the first payment from frozen Russian assets this summer.

Ukraine will receive the first payment from frozen Russian assets this summer. The EU has prepared a draft law, according to which Ukraine can start receiving profits from frozen Russian sovereign assets as early as July of this year. As Bloomberg writes, the draft law envisages...

Tuesday, March 19

Piraeus Bank executive in Kyiv: “The country’s best defense is economic growth.” How can the economy be developed during the war? While the financial sector has adjusted to operations under the harsh conditions of the full-scale war and has obtained strong profitability, banks are not lending actively, so they are not driving GD...

Monday, March 18

Despite all the challenges, we continue to move towards the goal: Olha Stefanishyna on the progress and obstacles in European integration.

Despite all the challenges, we continue to move towards the goal: Olha Stefanishyna on the progress and obstacles in European integration. Within the framework of the second event of Ukraine Business Network, where outstanding speakers from both the private and public sectors presented global macroeconomic forecasts for 2024-2025, scenar...

In February, hryvnia bonds were 50% more profitable than bank deposits.

In February, hryvnia bonds were 50% more profitable than bank deposits. According to the Ministry of Finance, last month the weighted average yield of hryvnia government bonds amounted to 17.32%, while the Ukrainian rate index for consumer deposits was only 11.34%. The an...

The key rate in Ukraine has again decreased to 14.5%, and the National Bank predicts further weakening.

The key rate in Ukraine has again decreased to 14.5%, and the National Bank predicts further weakening. The National Bank’s board has decided to reduce the discount rate by 0.5 percentage point to 14.5% beginning March 15. In addition, the NBU reported that the rates on three-month deposit certificates ...

Ukraine awaits a decision on a new IMF tranche on March 21 and $10B in external financing in March-April.

Ukraine awaits a decision on a new IMF tranche on March 21 and $10B in external financing in March-April. The National Bank assumes that Ukraine will receive over $10B in external funding in March-April. A favorable decision by the IMF board of directors will allow Ukraine to receive the fourth tranche of...

The European Parliament supports using Russian assets for Ukraine’s benefit.

The European Parliament supports using Russian assets for Ukraine’s benefit. Last week in Strasbourg, the European Parliament adopted a resolution on the EU directive regarding the detection and seizure of assets of criminal origin, which allows for the quick freezing and conf...

Thursday, March 14

Ukrainians have increased bank deposits by 14%; the majority trust the banking system despite turbulence.

Ukrainians have increased bank deposits by 14%; the majority trust the banking system despite turbulence. From February 2023 to February 2024, the volume of funds in consumer bank accounts increased by 14% (by ₴133B) thanks to hryvnia funds, said the top manager of the National Anti-Corruption Bureau of U...

Wednesday, March 13

Ukraine will receive the first €3B in profit this summer from frozen Russian assets.

Ukraine will receive the first €3B in profit this summer from frozen Russian assets. The EC wants to accelerate the approval of the mechanism that will allow the use of profits from frozen Russian assets so that Ukraine can receive the first €2-3B tranche in July. As the FT writes, th...

Businesses in Ukraine expect revenue growth in 2024.

Businesses in Ukraine expect revenue growth in 2024. In 2024, top managers of Ukrainian companies predict mostly positive or stable dynamics of change in their incomes. According to an EBA survey, 41% of CEOs expect an increase in revenues in dollar ter...

What worries foreign investors in Ukraine the most?

What worries foreign investors in Ukraine the most? By order of the NBU, foreign investors cannot withdraw their dividends from Ukraine, which is the biggest problem with the inflow of investment, said the head of the EBA, Anna Derevyanko. “If yo...

Tuesday, March 12

Borrell supports issuing bonds for the defense of the EU and using Russian asset revenues for Ukraine.

Borrell supports issuing bonds for the defense of the EU and using Russian asset revenues for Ukraine. The EU can issue bonds to finance defense needs, as Russia threatens the bloc’s security, said the head of EU diplomacy, Josep Borrell. Debates have recently begun on the prospect of the EU assu...

S&P Global Ratings expects that Ukraine will receive the entire volume of international financial assistance in 2024.

S&P Global Ratings expects that Ukraine will receive the entire volume of international financial assistance in 2024. In the coming years, support will remain for Ukraine from the international community, but the amount may be lower. The Ukrainian government expects to receive $38B from all donors in 2024, including ...

Due to delayed funding from its allies, Ukraine is seeking more resources and is looking for other domestic sources to finance urgent needs.

Due to delayed funding from its allies, Ukraine is seeking more resources and is looking for other domestic sources to finance urgent needs. All of Ukraine’s internal resources are directed to funding the army; the state has almost exhausted its possibilities for domestic revenue sources, said the head of the budget committee of the Ukrain...

Monday, March 11

Bond Investors are Ready to Fund the War Against the Russian Federation.

Bond Investors are Ready to Fund the War Against the Russian Federation. Bond investors are urging squabbling European Union leaders to get their act together on defense spending and make the bloc’s trillion-euro bond program permanent, reported Bloomberg. That means deman...

The decision on the next IMF tranche for Ukraine will occur in the second half of March.

The decision on the next IMF tranche for Ukraine will occur in the second half of March. The Executive Board of the IMF will hold a meeting on the third review of the Extended Financing Program (EFF) and the allocation of the next tranche for Ukraine in the second half of this month, said...

Friday, March 8

The US is looking for alternatives and is preparing to allocate $200M from Pentagon reserves to Ukraine.

The US is looking for alternatives and is preparing to allocate $200M from Pentagon reserves to Ukraine. White House officials are discussing whether the Biden administration can use approximately $200M in Defense Ministry reserves for emergency aid to Kyiv. These funds can be used to pay for weapons, ma...

Ukraine may lose out on EU funds if reforms are not fulfilled.

Ukraine may lose out on EU funds if reforms are not fulfilled. The €50B EU Ukraine Facility program will contain about 140 indicator conditions. The main areas of reforms in the program will be state administration, state finances, the justice system, and the fig...

Ukraine needs $9.5B in financing for priority recovery items; Ukraine’s partners are already working on mechanisms.

Ukraine needs $9.5B in financing for priority recovery items; Ukraine’s partners are already working on mechanisms. The government has said that Ukraine needs $9.5B in external funding for priority recovery needs in 2024. To that end, the US State Department and the German Marshall Fund (GMF) have announced the cre...

Moody’s updated its forecast for the largest Ukrainian banks.

Moody’s updated its forecast for the largest Ukrainian banks. International rating agency Moody’s confirmed the long-term and short-term ratings of Privatbank, Oschadbank, Ukreximbank, Raiffeisen Bank, Taskombank, Vostok and Pivdenny banks in hryvnia and f...

Thursday, March 7

The EU is approaching a decision on the use of Russian assets.

The EU is approaching a decision on the use of Russian assets. In Europe, the only politically realistic approach to using Russian money to finance Ukraine is considered to involve about 1% of the frozen funds. However, Ukraine needs about €100B a year to fight t...

Britain is ready to lend the Russian Federation’s frozen assets to Ukraine.

Britain is ready to lend the Russian Federation’s frozen assets to Ukraine. Britain is prepared to give Ukraine all the frozen assets of the Russian central bank that are being held in the country, on the condition that Russia will be forced to pay reparations to Ukraine afte...

Bankers predict a decrease in the share of NPLs in 2024.

Bankers predict a decrease in the share of NPLs in 2024. More than a third of loans issued by Ukrainian banks, or 37.4%, have been overdue for more than 90 days. Experts are convinced that in 2024, the share of NPLs in Ukraine’s banking system will decrease...

Wednesday, March 6

The EU’s new defense industry strategy envisages using Russian assets to finance Ukraine’s defense industry.

The EU’s new defense industry strategy envisages using Russian assets to finance Ukraine’s defense industry. The EC has presented a legislative proposal regarding the European Defense Industry Program (EDIP), which would allow for future financing of support for Ukraine’s defense-industrial complex at ...

Tuesday, March 5

Ukrainian businesses are offered grants worth thousands of dollars from several projects.

Ukrainian businesses are offered grants worth thousands of dollars from several projects. USAID announced it will begin accepting grant applications within the Building the Future of Ukrainian Logistics and Exports project framework. The grant financing is intended to achieve important goa...

Monday, March 4

Ukraine’s budget revenue increased by 65% in February, and the gambling industry increased its tax payments by 370%.

Ukraine’s budget revenue increased by 65% in February, and the gambling industry increased its tax payments by 370%. The receipt of taxes, fees, and mandatory payments to the general fund of the state budget of Ukraine in February amounted to ₴184.8B, 65.4% more than in January, the Ministry of Finance reported. Rev...

The EU runs €90M worth of projects to help businesses operating in Ukraine, and the World Bank will join the program to provide affordable housing.

The EU runs €90M worth of projects to help businesses operating in Ukraine, and the World Bank will join the program to provide affordable housing. As the EU Delegation to Ukraine reported, since the beginning of the full-scale invasion, support for the Ukrainian economy from the EU has focused on helping small and medium-sized enterprises. Withi...

The West continues discussing the confiscation of Russian assets – the US offers to develop a mechanism together with France.

The West continues discussing the confiscation of Russian assets – the US offers to develop a mechanism together with France. US Treasury Secretary Janet Yellen called on French Finance Minister Bruno Le Maire to help develop options for Ukraine to use frozen Russian assets before a June summit after he publicly rejected Yel...

Friday, March 1

Bankers are predicting an increase in the yield of hryvnia deposits in Ukraine.

Bankers are predicting an increase in the yield of hryvnia deposits in Ukraine. In March, the rates on stock hryvnia deposits, depending on the term of placement of funds, may reach 17% per annum, predicts the top manager of Globus Bank, Dmytro Zamotaev. He specified that until t...

Unity Facility insurance coverage in the sea corridor has been extended to all cargoes.

Unity Facility insurance coverage in the sea corridor has been extended to all cargoes. The Unity Facility grain transportation insurance mechanism for the Ukrainian maritime corridor, which has been in effect since November 2023, has been expanded to include vessels that carry not only ...

How many Ukrainians use microcredit, and how often?

How many Ukrainians use microcredit, and how often? The services of microfinance organizations are used by about 13% of the adult population of Ukraine. In comparison, the share of borrowers who took a loan to meet their daily needs while waiting for t...

Thursday, February 29

War risk insurance is gaining momentum in Ukraine.

War risk insurance is gaining momentum in Ukraine. Ukrainian insurance companies are actively offering insurance against war risks to individuals and legal entities in various segments (auto insurance, real estate, medical, and agricultural insurance)...

Ukraine receives $760M in grant funds from Japan and Norway, and the EU and Germany offer €1M in business grants.

Ukraine receives $760M in grant funds from Japan and Norway, and the EU and Germany offer €1M in business grants. Ukraine has received $760M in grants from Japan and Norway to pay pensions and salaries to rescue workers and teachers. The money comes as part of the World Bank’s PEACE project. The government of Jap...

The state continues to accumulate debts to banks for compensation under the 5-7-9 soft loan program.

The state continues to accumulate debts to banks for compensation under the 5-7-9 soft loan program. The top manager of OTP Bank, Volodymyr Mudryi, said that in 2023, ₴16 billion was set aside in the state budget to compensate banks for rates issued under the Affordable Loans 5-7-9 program. The year ...

Banks’ profit in January increased by 14%, analysts explained why.

Banks’ profit in January increased by 14%, analysts explained why. In January 2024, Ukrainian banks produced ₴16.7B in net profit, ₴2.068B or 14% more than in January 2023. Net profit increased despite the increase in the tax rate: In January 2023, banks paid 18% tax...

Since the beginning of the war, the labor market in Ukraine has recovered by 93%, and the average salary has increased by 30%.

Since the beginning of the war, the labor market in Ukraine has recovered by 93%, and the average salary has increased by 30%. Since the start of the full-scale invasion, the labor market has recovered by 93% in terms of vacancies. Work.ua research shows that Ukrainians prefer to work remotely. At the same time, after the sta...

Wednesday, February 28

The European Parliament approved the allocation of €50B for Ukraine over four years.

The European Parliament approved the allocation of €50B for Ukraine over four years. However, the €50B EU program will receive final approval in April. “The regulations for disbursement of funds under the EU program contain final conditions, which will be approved by the governm...

Tuesday, February 27

In March, Ukraine will receive about $9B in international aid.

In March, Ukraine will receive about $9B in international aid. An expert from the Center for Economic Strategy said: “The first two months of 2024 were not very fruitful for Ukraine in terms of international aid. As of February 23, we had received only $436...

Monday, February 26

The currency deficit in Ukraine has increased by 100%.

The currency deficit in Ukraine has increased by 100%. The hryvnia fell to record-low levels but later stabilized. Last week, the National Bank increased the sale of dollars from reserves in connection with the growing currency deficit. The dollar rate in...

The G7 reconfirms that Russian assets will remain frozen until the aggressor pays reparations to Ukraine.

The G7 reconfirms that Russian assets will remain frozen until the aggressor pays reparations to Ukraine. The G7 countries released a statement in which they noted: “We confirm that the sovereign assets of the Russian Federation in our jurisdictions will remain immobilized until the Russian Federati...

Friday, February 23

Ukraine has come close to an agreement with the IMF on a new $900M tranche.

Ukraine has come close to an agreement with the IMF on a new $900M tranche. Bloomberg reports that Ukraine has reached a deal with the IMF, though the Fund’s executive board still needs to ratify it. The agreement is the result of the ongoing discussions over the past t...

Last year, Ukraine’s energy sector delivered ₴115B to the budget.

Last year, Ukraine’s energy sector delivered ₴115B to the budget. This total refers to contributions from the payment of excise duty and rent of energy sector enterprises, which are 17% more than in 2022, reported DiXi Group. It is noted that the taxpayers remitted ...

Ukraine approves the capital market reform that is necessary for a World Bank loan.

Ukraine approves the capital market reform that is necessary for a World Bank loan. The Ukrainian Parliament adopted a law regulating and supervising capital markets and organized commodity markets in general. “This is an important European integration law, which is also a beac...

Thursday, February 22

A German bank has transferred €1.4B to Ukraine for humanitarian aid and infrastructure support.

A German bank has transferred €1.4B to Ukraine for humanitarian aid and infrastructure support. The German State Development Bank KfW, on behalf of the German and EU governments, will support Ukraine by implementing more than 40 projects totaling more than €1.4B. In particular, the funds will be...

Wednesday, February 21

Japan allocates more than $12B in aid to Ukraine.

Japan allocates more than $12B in aid to Ukraine. Prime Minister Denys Shmyhal reported that Japan will provide Ukraine with $12.1B in aid, including previously announced and allocated amounts. “This is, in particular, a grant worth $4.7B, which we w...

Tuesday, February 20

The EU proposes issuing €100B worth of Eurobonds to stimulate its defense industry.

The EU proposes issuing €100B worth of Eurobonds to stimulate its defense industry. The EU should work on a plan to issue €100B worth of Eurobonds to promote the continent’s defense industry while doing more to provide arms to Ukraine, said Estonian Prime Minister Kaja Kallas. ...

The government is considering raising taxes as part of the IMF program.

The government is considering raising taxes as part of the IMF program. The Cabinet of Ministers is considering a plan to increase budget revenues by 0.5% of GDP, which Ukraine must present within the IMF program. To that end, the government plans to introduce additional ...

Ukrainian businesses increased the volume of soft loans by 34% over the year.

Ukrainian businesses increased the volume of soft loans by 34% over the year. The total volume of loans granted under the Affordable Loans 5-7-9% program increased by 2% in the fourth quarter of 2023 and by 34% for the entire year, according to the Banking Sector Review for Feb...

Monday, February 19

The US Ministry of Justice handed over $500,000 of confiscated Russian funds to Ukraine, though Euroclear opposes it.

The US Ministry of Justice handed over $500,000 of confiscated Russian funds to Ukraine, though Euroclear opposes it. Confiscated funds will be transferred directly to Estonia and further allocated to Ukraine through a project to accelerate damage assessment and critical repairs of the Ukrainian electricity system. T...

Last year, banks in Ukraine earned 100% more than before the beginning of the war and almost completely paid off their refinancing debts.

Last year, banks in Ukraine earned 100% more than before the beginning of the war and almost completely paid off their refinancing debts. In 2023, Ukrainian banks produced almost ₴160B in pre-tax profit, 100% more than before the start of the full-scale invasion. Banks will have to pay a tax of half their total profit – more than ...

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