Finance

Tuesday, May 14

Kyiv and Washington are negotiating lending terms for a $7.8B loan for Ukraine.

Kyiv and Washington are negotiating lending terms for a $7.8B loan for Ukraine. Ukraine and the US are working on a list of conditions and reforms, the fulfillment of which will allow Kyiv to receive a $7.8B loan. US legislation that will provide Ukraine with almost $61B in finan...

Monday, May 13

The EIB will provide up to €30M to support Ukrainian business: what other support programs are available to Ukraine?

The EIB will provide up to €30M to support Ukrainian business: what other support programs are available to Ukraine? The Government of Ukraine has allowed two Ukrainian banks to borrow up to €30M from the European Investment Bank to further support Ukrainian small and medium-sized businesses by improving preferentia...

Ukraine considers it insufficient to receive only profit from Russian assets.

Ukraine considers it insufficient to receive only profit from Russian assets. The €3B in profits collected from frozen Russian assets is “almost nothing” compared to the amount that will be necessary to win the war against Russia, said Minister of Justice of Ukraine...

Friday, May 10

Foreign financial aid for Ukraine fell to $1.7B in April after record inflows in March.

Foreign financial aid for Ukraine fell to $1.7B in April after record inflows in March. According to experts from the Centre for Economic Strategy (CES), after the record-high receipt of foreign aid in March ($9B), in April aid decreased to $1.7B. Ukraine received a $1.6B loan from the E...

Thursday, May 9

The EU has decided the fate of frozen Russian assets.

The EU has decided the fate of frozen Russian assets. The ambassadors of the EU agreed on what to do with the profits from the frozen assets of Russia, the Belgian Presidency of the Council of the EU has announced. The money will be used to support Ukrai...

What grants are international partners offering to Ukrainian businesses?

What grants are international partners offering to Ukrainian businesses? In Ukraine, the DRG4Food competition continues to provide grants for the implementation of innovations in the food industry. Its main goal is to promote the development and testing of responsible data...

After EU ambassadors voice their support for the Ukraine Facility, Ukraine looks to receive €16B in funding for 2024.

After EU ambassadors voice their support for the Ukraine Facility, Ukraine looks to receive €16B in funding for 2024. Ambassadors of the EU member states have supported the Ukraine Facility, agreeing with the positive assessment of the financial support instrument proposed by the EC. The EU Council must still approve...

Russia continues to find loopholes to circumvent sanctions; Swiss banks came in handy.

Russia continues to find loopholes to circumvent sanctions; Swiss banks came in handy. Some Swiss banks are ready to work with rubles, although in 2023, due to the tightening of service rules, customers of Swiss banks with Russian passports faced the threat of having their accounts bloc...

Wednesday, May 8

The EU will direct 90% of the revenue from frozen Russian assets to help Kyiv.

The EU will direct 90% of the revenue from frozen Russian assets to help Kyiv. Chancellor Olaf Scholz said on Monday that around 90% of the revenues generated from Russian assets frozen in the EU should be spent on arms purchases for Ukraine to boost its defensive capabilities. ...

Tuesday, May 7

The G7, led by the US, is discussing giving Ukraine $50B secured by profits from the assets of the Russian Federation; there is no longer any talk of confiscation.

The G7, led by the US, is discussing giving Ukraine $50B secured by profits from the assets of the Russian Federation; there is no longer any talk of confiscation. The US is negotiating with its close partners to provide Ukraine with aid worth up to $50B, with the costs to be repaid with profits from sovereign Russian assets. The US insists on concluding an agre...

The NBU has introduced its largest package of measures to ease FX restrictions.

The NBU has introduced its largest package of measures to ease FX restrictions. Most changes came into effect on May 4, but the ability to repatriate new dividends will begin on May 13, 2024. It is emphasized that these changes aim to improve the conditions for conducting busines...

Ukraine’s Eurobond holders demand payment resumption next year.

Ukraine’s Eurobond holders demand payment resumption next year. A group of foreign bondholders, including BlackRock and Pimco, will pressure Ukraine to resume interest payments on its debt as early as next year. The WSJ notes that the owners of outstanding Ukraini...

The US and Ukraine are working on the necessary conditions for the return of economic aid.

The US and Ukraine are working on the necessary conditions for the return of economic aid. US and Ukraine are working on the provision of economic aid, US Ambassador Bridget Brink and USAID Deputy Administrator Isobel Coleman told reporters. According to the law on aid to Ukraine passed at ...

Friday, May 3

Russia will seize Western assets in retaliation, and the aggressor has other options for its revenge.

Russia will seize Western assets in retaliation, and the aggressor has other options for its revenge. As Reuters points out, Russia does not have enough Western assets on its territory for proportionate retaliatory confiscation, but it still has ways to retaliate against the West if it dares to seize ...

Germany is offering Ukrainian businesses up to €1M for eco-modernization of their production.

Germany is offering Ukrainian businesses up to €1M for eco-modernization of their production. The German Society for International Cooperation (GIZ) is launching a new grant program for Ukrainian businesses. Enterprises that want to implement their own production eco-modernization projects are...

Thursday, May 2

The National Bank has indicated the presence of prerequisites for further reduction of the key policy rate.

The National Bank has indicated the presence of prerequisites for further reduction of the key policy rate. The NBU sees room for further discount rate reduction after its reduction to 13.5% on April 26, 2024. The condition for the next step is the preservation of favorable macro-financial trends. In partic...

The EBRD provides a guarantee to OTP Leasing to finance Ukrainian small and medium-sized enterprises.

The EBRD provides a guarantee to OTP Leasing to finance Ukrainian small and medium-sized enterprises. The guarantee will cover 50% of OTP Leasing’s new subleasing contracts with a total value of up to €80M. Financing will be provided in two tranches of €40M each, the first of which has already been co...

Wednesday, May 1

The first stage of currency liberalization announced by the National Bank will cost Ukraine $5.5B.

The first stage of currency liberalization announced by the National Bank will cost Ukraine $5.5B. However, the NBU says it will significantly expand business opportunities, improve the conditions for attracting investment and private capital participation in reconstruction, and, as a result, posit...

Tuesday, April 30

The confiscation of Russian assets will help Ukraine to finance the war at least until the end of 2028.

The confiscation of Russian assets will help Ukraine to finance the war at least until the end of 2028. Despite the support from the US, Ukraine needs a medium-term financing plan to repel Russian aggression, and the main source of this financing must be Russia’s frozen assets. There is a high chance th...

The largest European banks increased their contributions to the Russian budget by 300%.

The largest European banks increased their contributions to the Russian budget by 300%. The largest European banks that are still operating in Russia paid more than €800M in Russian taxes in 2023, which is 300% more than before the start of the full-scale war. In particular, we are talki...

Demand for property insurance against war risk is growing in Ukraine.

Demand for property insurance against war risk is growing in Ukraine. Ukrainian companies are developing new directions for property insurance during the war, but there will be no payments in the event of weapons of mass destruction being used. Currently, the largest Uk...

The devaluation of the national currency against the dollar will continue in 2024.

The devaluation of the national currency against the dollar will continue in 2024. According to analysis from the ICU: “Given the NBU’s desire for devaluation and increased exchange rate volatility, we have revised the year-end exchange rate forecast to ₴42.3 per $1 comp...

Monday, April 29

Germany opposes the transfer of Russian assets to Ukraine due to fears of new WWII lawsuits.

Germany opposes the transfer of Russian assets to Ukraine due to fears of new WWII lawsuits. Demands for reparations stemming from WWII crimes have dogged Germany for decades. Calls for further reparations are appearing even now. In 2019, Greece demanded more than $300B in compensation, while...

Friday, April 26

The National Bank lowered the key policy rate to 13.5% and improved its inflation forecast.

The National Bank lowered the key policy rate to 13.5% and improved its inflation forecast. With the discount rate decrease, the rates on overnight deposit certificates and three-month deposit certificates are also reduced – to 13.5% and 16.5%, respectively. The National Bank of Ukrain...

The NBU is considering lifting restrictions on currency withdrawals to service old debts.

The NBU is considering lifting restrictions on currency withdrawals to service old debts. The head of the NBU, Andriy Pyshnyi, said: “Currently, we see the presence of sufficient prerequisites for continuing the process of currency liberalization following the strategy approved as pa...

A US regional fund is offering Ukrainian entrepreneurs a $15,000 grant to scale up their processing businesses, and the EBRD will provide mentoring support to innovative startups.

A US regional fund is offering Ukrainian entrepreneurs a $15,000 grant to scale up their processing businesses, and the EBRD will provide mentoring support to innovative startups. The Ministry of Economy and American Western NIS Enterprise Fund (WNISEF), whose portfolio is managed by investment company Horizon Capital, have agreed on a grant program for women engaged in busines...

Thursday, April 25

Borrell insists on directing 90% of the income from the Russian Federation’s assets to Ukraine.

Borrell insists on directing 90% of the income from the Russian Federation’s assets to Ukraine. The EU’s high representative, Josep Borrell, said that 90% of the proceeds from the Russian Federation’s frozen assets should be directed to the European Peace Fund, which purchases weapon...

Bank of America believes that Ukrainian dollar bonds have growth potential.

Bank of America believes that Ukrainian dollar bonds have growth potential. Strategists at BofA Securities, an American multinational investment banking division under the auspices of Bank of America, believe that Ukrainian dollar bonds show significant growth potential. Mean...

Ukrainian banks expect an increase in lending and an increase in portfolio quality.

Ukrainian banks expect an increase in lending and an increase in portfolio quality. Banks expect an increase in consumer and commercial lending volume over the next 12 months, and for the first time since the end of 2021, they forecast an increase in loan portfolio quality, the NBU r...

Wednesday, April 24

How will Ukraine’s partners help it close the hole in its budget this year?

How will Ukraine’s partners help it close the hole in its budget this year? According to the Ukrainian government, the need for international financing in 2024 is $37.2B. As of April 20, Ukraine has received $10.2B: $4.9B from the EU (Ukraine Facility) $2.1B from Japan...

Tuesday, April 23

IMF assistance acts as a catalyst for Ukraine’s financial support from other countries,

IMF assistance acts as a catalyst for Ukraine’s financial support from other countries, the head of the IMF, Kristalina Georgieva, emphasized. She notes that the IMF’s 2023-2027 program with Ukraine for will provide $15.1B. However, Georgieva states the program will generate a total of $...

Ukraine will propose a $20B debt restructuring plan by May.

Ukraine will propose a $20B debt restructuring plan by May. Ukraine has prepared a $20B debt restructuring plan for private bondholders and plans to present it by the beginning of May. It is noted that it is critical for Ukraine to conclude a debt restructurin...

Ukraine’s hard currency bonds extended their losses after the US House of Representatives approved the financial and military aid package.

Ukraine’s hard currency bonds extended their losses after the US House of Representatives approved the financial and military aid package. According to Bloomberg, Ukrainian currency bonds initially jumped after the US House of Representatives approved a financial and military aid package worth nearly $61B. However, positive sentiment ero...

Monday, April 22

The EU is approaching a decision on the use of profits from frozen Russian assets to help Ukraine; the US has found a way to transfer up to €50B.

The EU is approaching a decision on the use of profits from frozen Russian assets to help Ukraine; the US has found a way to transfer up to €50B. The Minister of Foreign Affairs of Lithuania, Gabrielius Landsbergis, believes that the EC and the Council of the EU are close to deciding to allocate to Ukraine the profits obtained from Russian Fede...

Friday, April 19

The head of the ECB criticizes the US’ plans regarding the frozen assets of the Russian Federation.

The head of the ECB criticizes the US’ plans regarding the frozen assets of the Russian Federation. The President of the European Central Bank, Christine Lagarde, spoke critically of the idea to use more than €260B in frozen Russian assets to finance military aid to Ukraine. She warned about the leg...

New US aid for Ukraine includes $60.8B and the confiscation of Russian assets.

New US aid for Ukraine includes $60.8B and the confiscation of Russian assets. According to the recently introduced bill regarding Ukraine, aid foresees allocation of $60.8B to Ukraine and regional partners counter Russia. Defense expenditures will amount to $49.9B and also cont...

Thursday, April 18

The Ministry of Finance is seeking about ₴50B in additional domestic resources to finance defense expenditures.

The Ministry of Finance is seeking about ₴50B in additional domestic resources to finance defense expenditures. More than ₴50B ($1.25B) must be found before the end of the year to pay the newly introduced, additional bonuses for military personnel and police officers in the amount of ₴70,000 for service on the ...

Tuesday, April 16

Businesses in high military risk zones receive 20% of available loans.

Businesses in high military risk zones receive 20% of available loans. Every fifth loan under the state program Affordable Loans was issued to a business operating in a zone of high military risk. Since the beginning of the year, loans worth ₴27.3B have been issued to al...

Ukrainians have begun to borrow money more actively and increase their deposits, but experts predict a rate decrease.

Ukrainians have begun to borrow money more actively and increase their deposits, but experts predict a rate decrease. The head of the Finance Committee, Danylo Hetmantsev, commenting on NBU data, notes that lending increased slightly in March but generally stagnated. The balance of hryvnia loans granted to businesses...

Due to sanctions, Russia struggles to receive billions of dollars in export revenue.

Due to sanctions, Russia struggles to receive billions of dollars in export revenue. The strengthening of American sanctions and the refusal by foreign banks to pay Russian companies have deprived Moscow of billions of dollars in foreign exchange. In March, the Russian Federation earn...

Monday, April 15

The US offers to provide Ukraine with billions of euros in aid secured by profits from the Russian Federation’s frozen assets.

The US offers to provide Ukraine with billions of euros in aid secured by profits from the Russian Federation’s frozen assets. As the FT writes, the US is proposing to the G7 a compromise plan for the use of Russian assets rather than their confiscation or simply providing Ukraine with their profits. Daleep Singh, the US pres...

The EU will provide Ukraine with €3.4B in transition financing and allocate €121M for EBRD recapitalization to increase assistance to Ukraine.

The EU will provide Ukraine with €3.4B in transition financing and allocate €121M for EBRD recapitalization to increase assistance to Ukraine. The EC has made the first €4.5B payment of transitional financing for Ukraine, and the next payment of €1.5B is planned for this month, subject to Ukraine’s compliance with all established conditions....

Friday, April 12

Donald Tusk: The EU must use the frozen Russian assets to help Ukraine.

Donald Tusk: The EU must use the frozen Russian assets to help Ukraine. During a news conference in Warsaw on April 11, Polish Prime Minister Donald Tusk said the European Union should tap Russia’s frozen assets to help Ukraine because the windfall profits alone are insuf...

Raiffeisen has launched commercial war risk insurance and will insure ₴1B worth of property.

Raiffeisen has launched commercial war risk insurance and will insure ₴1B worth of property. Raiffeisen Bank has launched a new service in the Ukrainian market for business clients to insure various types of property against war risks. Insurance companies will provide coverage for property th...

Thursday, April 11

Due to slowing inflation, the interest rate on inflation-linked bonds will decrease to 5.4% per annum in May 2024.

Due to slowing inflation, the interest rate on inflation-linked bonds will decrease to 5.4% per annum in May 2024. According to analyst Oleksiy Blinov, as the growth dynamics of the consumer price index slowed to 3.2% per annum in March, the interest rate for inflation-linked government bonds in May will be 5.4% p...

The export credit agency receives wider opportunities for investment insurance.

The export credit agency receives wider opportunities for investment insurance. The government approved the list of military and political risks and the terms and conditions of risk insurance for the Export Credit Agency (ECA). The approved resolution will improve the legal regul...

The EBRD provides a €200M guarantee for business lending.

The EBRD provides a €200M guarantee for business lending. The EBRD has provided Oschadbank with a limit for the portfolio mechanism for risk distribution of €50M. This will generate an additional €200M in new financing for Ukraine’s private sector. The EBRD ...

Unpopular decisions must be made: How does Ukraine plan to get along without US aid?

Unpopular decisions must be made: How does Ukraine plan to get along without US aid? If Ukraine does not receive $11.2B in budget support from the US (as part of a $60B aid package), the consequence will be difficult, unpopular decisions by the Ukrainian government, noted the head of ...

Wednesday, April 10

Experts confirm the recovery of consumer lending in Ukraine.

Experts confirm the recovery of consumer lending in Ukraine. According to the NBU, as of March 1, 2024 the portfolio of bank loans to individuals amounted to ₴230.9B, 12.1% more than on the same date last year. For comparison, as of March 1, 2022, customer debt...

Ukrainian debtholders plan to create a committee of creditors against the background of a possible debt restructuring.

Ukrainian debtholders plan to create a committee of creditors against the background of a possible debt restructuring. According to Bloomberg, large bondholders may intensify negotiations to create such a group after the IMF meeting on April 17. They note that time pressure is increasing as the moratorium on Ukrainian...

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