Finance

Tuesday, April 9

Ukraine’s debt to the IMF is recognized as stable and is not subject to restructuring.

Ukraine’s debt to the IMF is recognized as stable and is not subject to restructuring. To the question of whether the IMF can write off Ukraine’s approximately $15B in debt, taking into account an analysis of Ukraine’s debt sustainability, the top manager of the IMF, Julie K...

What European grants can Ukrainian startups and projects receive?

What European grants can Ukrainian startups and projects receive? Women TechEU is an EU-funded project supporting women leading deep technology startups. As part of the project, a total of 160 startups will receive a grant of up to €75,000 each, as well as an indivi...

Monday, April 8

Ukraine increases its international reserves to a new record.

Ukraine increases its international reserves to a new record. Ukraine’s international reserves grew by 18% in March and amounted to $43.8B on April 1, the National Bank reported. The regulator explained that the increase is due to the volume of income from...

The Russian Federation’s frozen assets: What is Ukraine waiting for, and what is it already receiving?

The Russian Federation’s frozen assets: What is Ukraine waiting for, and what is it already receiving? Deputy Head of the Office of President Iryna Mudra reported that to speed up the receipt of frozen assets from the US the REPO act, which would allow the US president to seize Russian sovereign assets...

Thursday, April 4

The EU continues to work on reparations for Ukraine: €37B in private and €208B in state assets of the Russian Federation are frozen.

The EU continues to work on reparations for Ukraine: €37B in private and €208B in state assets of the Russian Federation are frozen. As European Commissioner for Justice, Didier Reynders, stated: “We are working on this issue regarding Russian frozen assets, whether private or public. We have €37B of private assets in Europe ...

Wednesday, April 3

The US is preparing to transfer $5-8B of Russian assets for the reconstruction of Ukraine.

The US is preparing to transfer $5-8B of Russian assets for the reconstruction of Ukraine. Congress is preparing a bipartisan bill that would allow the confiscation of $5-8B of the Russian Federation’s sovereign assets that are currently under the US’ jurisdiction and use them t...

Ukraine’s national debt increased by 54% during the first two years of the war.

Ukraine’s national debt increased by 54% during the first two years of the war. From February 2022 to February 2024, Ukraine’s state debt increased by $50.4B. To reduce debt pressure on the state budget, Ukraine has worked to attract loans on preferential terms. For example, the ...

The National Bank explains why in 2023, real GDP grew by 5.3%.

The National Bank explains why in 2023, real GDP grew by 5.3%. As reported by the NBU, public sector consumption increased by 9% over the year, and its share in GDP in 2023 reached almost 42% compared to about 18% in 2021. Private consumption grew by 6.1% thanks ...

Tuesday, April 2

Bankers predict a yield decrease for hryvnia deposits at the end of April.

Bankers predict a yield decrease for hryvnia deposits at the end of April. At the beginning of April, rates on hryvnia deposits will remain stable. However, from the second half of the month, we should expect a slight drop in profitability, said Dmytro Zamotayev, director of...

Demand for microcredit grew by 50% last year but failed to reach pre-war levels.

Demand for microcredit grew by 50% last year but failed to reach pre-war levels. Last year, Ukrainians signed more than 8.2 million microcredit contracts for a total amount of ₴40.62B, Opendatabot reports. “However, it is too early to claim that Ukrainians have become impove...

Monday, April 1

How Ukraine’s budget was funded in March: $9B in external financing and $4B in taxes and fees.

How Ukraine’s budget was funded in March: $9B in external financing and $4B in taxes and fees. In March, the state budget’s general fund received ₴158.1B (over $4B) in taxes, fees, and mandatory payments. About ₴105.7B was received from taxes and ₴45.8B from the State Customs Service, but...

Currency restrictions effectively stabilize the Ukrainian economy, but they hold back investment.

Currency restrictions effectively stabilize the Ukrainian economy, but they hold back investment. The director of the NBU’s monetary policy department, Volodymyr Lepushynskyi, stated: “Currency restrictions are effective for stabilizing the economy, but they are burdensome for it and hold ba...

Friday, March 29

One Ukrainian state bank will be reorganized into a bank for reconstruction.

One Ukrainian state bank will be reorganized into a bank for reconstruction. To accumulate and distribute resources for reconstruction, Ukraine needs to create a specialized state development bank (created by reformatting one of the five state banks), which will be removed fro...

Ukraine’s partners provide tens of millions of euros in guarantees for Ukrainian business lending.

Ukraine’s partners provide tens of millions of euros in guarantees for Ukrainian business lending. The Polish bank BGK and Ukrainian Kredobank signed an addendum to an agreement. Kredobank will receive an additional €10M in EC guarantees for lending to Ukrainian entrepreneurs. These funds will incr...

Thursday, March 28

What should Ukraine expect from its international partners in 2024?

What should Ukraine expect from its international partners in 2024? In the first quarter of the year, Ukraine plans to receive almost $10.2B from partners, notes the Chairman of the Committee on Finance, Danylo Hetmantsev. In particular: $4.88B from the EU (Ukraine Fa...

The EU does not want to transfer €5B in income from the frozen assets of the Russian Federation to Ukraine.

The EU does not want to transfer €5B in income from the frozen assets of the Russian Federation to Ukraine. The EU decided not to transfer €5B to Ukraine from the proceeds received from the investment of the frozen assets of the Russian Federation in 2022-2023. This money will be in Euroclear, the body that...

Wednesday, March 27

Following the discount rate decrease, Ukrainian bonds’ yield fell as well.

Following the discount rate decrease, Ukrainian bonds’ yield fell as well. At the first auction, after the NBU decided to lower the discount rate, the Ministry of Finance lowered rates for OVDP by 20-30 basis points. The secondary market also reacted by lowering rates for hr...

The international financial aid deficit next year may reach $15B.

The international financial aid deficit next year may reach $15B. As Deputy Chairman of the Finance Committee Yaroslav Zheleznyak said, the lack of financial aid from international partners next year may amount to $10-15B, and the hidden additional state budget defi...

Tuesday, March 26

The key policy rate in Ukraine may drop to 11-12% by the end of the year.

The key policy rate in Ukraine may drop to 11-12% by the end of the year. Some members of the Monetary Policy Committee of the National Bank have not ruled out a lowering of the key policy rate to 11%–12% this year. This rate will be consistent with expected moderate inflat...

The NBU predicts the stabilization of Ukraine’s FX market.

The NBU predicts the stabilization of Ukraine’s FX market. The National Bank has reported that the upcoming arrival of international financial assistance should contribute to maintaining the stability of Ukraine’s foreign exchange market. As noted in th...

How business tax increases and economic reservations from mobilization will affect Ukraine’s budget.

How business tax increases and economic reservations from mobilization will affect Ukraine’s budget. Ukraine needs to find new sources of income for the state budget because raising taxes for businesses will lead to a decline in the country’s defense capabilities, according to Deputy Chairman o...

Monday, March 25

The confiscation of Russian assets is inevitable to ensure Ukraine’s victory, but banks fear lawsuits from the Kremlin.

The confiscation of Russian assets is inevitable to ensure Ukraine’s victory, but banks fear lawsuits from the Kremlin. The EU will eventually have to confiscate Russian assets if it wants Ukraine to win in the confrontation with the Russian Federation, said the head of the central bank of Latvia, Martins Kazaks. ̶...

Each delayed reform within the framework of the Ukraine Facility will cost Ukraine $400M.

Each delayed reform within the framework of the Ukraine Facility will cost Ukraine $400M. Deputy Minister of Economy Oleksiy Sobolev voiced this prediction at the presentation of the Monitoring of the Implementation of the Conditions of the IMF Program and Support from the EU. According to...

Friday, March 22

The indissoluble link between business and war: UBN held a second event in Kyiv

The indissoluble link between business and war: UBN held a second event in Kyiv On a still cool but already spring day, amid a tangle of bad news and public concerns about the future hanging in the air of Kyiv’s streets, a circle of selected business investors, entrepreneur...

The US supports issuing $50B in bonds backed by frozen Russian assets.

The US supports issuing $50B in bonds backed by frozen Russian assets. The US has proposed to the G7 countries the creation of a special-purpose vehicle to issue at least $50B in bonds backed by the profits generated by frozen Russian sovereign assets and use the proceed...

Over the year, Ukraine’s gross foreign debt increased by almost 25%. How does this threaten the financial system?

Over the year, Ukraine’s gross foreign debt increased by almost 25%. How does this threaten the financial system? Ukraine’s gross foreign debt at the end of 2023 amounted to $161.5B. That is, it increased by almost 25% (+$30.6B). This debt includes the external debt from the government, the central bank, commerci...

Thursday, March 21

Republicans support providing Ukraine with loans, although the White House is opposed.

Republicans support providing Ukraine with loans, although the White House is opposed. Republicans in the US Congress are seriously considering providing at least part of the Ukrainian aid package in the form of a loan as a possible solution to the months-long struggle to deliver suppor...

In January, the volume of mortgage loans issued increased by 100% to ₴1.1B.

In January, the volume of mortgage loans issued increased by 100% to ₴1.1B. In January, Ukrainian banks issued 676 mortgage loans for a total amount of ₴1.1B, the National Bank reported. The volume of consumer mortgage loans granted decreased by 33% compared to December, whil...

Ukraine is unable to pay its bond owners $4.5B, so it is starting debt restructuring negotiations.

Ukraine is unable to pay its bond owners $4.5B, so it is starting debt restructuring negotiations. Beginning in August, Ukraine must pay Eurobond holders $4.5B to service its debt. In 2024, Ukraine is scheduled to pay $910M that will be applied to the principle and $3.61B in interest. However, this...

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...

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