Finance

Thursday, December 28

Preferential loans for businesses will cost the state ₴5B this year.

Preferential loans for businesses will cost the state ₴5B this year. The state’s debt to banks for interest compensation under the 5-7-9% Affordable Loans program will reach ₴5B by the end of the year, the head of the parliament’s finance committee, Danylo ...

Taxes, customs, finance, and budget: the Ministry of Finance implemented 46% of all EU legal acts in Ukraine.

Taxes, customs, finance, and budget: the Ministry of Finance implemented 46% of all EU legal acts in Ukraine. The Ministry of Finance fully implemented 742 acts, 46% of the total number of acts of EU law implemented by Ukraine, preparing for negotiations to join the EU. The Ministry of Finance is responsible ...

The Minister of Finance summarized this year’s budget financing and outlined the prospects for the following years.

The Minister of Finance summarized this year’s budget financing and outlined the prospects for the following years. In 2023, Ukraine attracted $42B through external financing just to cover budget needs and support a record amount of borrowing on the domestic market, Minister of Finance Serhiy Marchenko said. This a...

Wednesday, December 27

Ukrainian banks’ net profit has soared by almost 600%; financial institutions have earned more than ₴130B.

Ukrainian banks’ net profit has soared by almost 600%; financial institutions have earned more than ₴130B. According to the results from 11 months of the year, banks’ net profit (after tax) amounted to ₴130.55B. In November alone, this number was ₴7.85B, reported the head of the Committee on Financial Issu...

The NBU is working on a new mechanism to insure military risk.

The NBU is working on a new mechanism to insure military risk. The National Bank, together with the World Bank and the EBRD, is preparing a new mechanism to regulate military risk, which is planned to be presented no later than in the first quarter of 2024, the h...

Tuesday, December 26

The Ministry of Finance has postponed the repayment of Ukraine’s foreign debts, which will save up to $15B.

The Ministry of Finance has postponed the repayment of Ukraine’s foreign debts, which will save up to $15B. Finance Minister Serhiy Marchenko signed an amendment to the Memorandum of Understanding that postpones state and state-guaranteed debt payments with a group of official creditors from the G7 and Pari...

The financial stress index in Ukraine is high but stable, so the NBU predicts a further decrease in the key rate.

The financial stress index in Ukraine is high but stable, so the NBU predicts a further decrease in the key rate. The financial stress index, which measures the level of current threats in the sector, is at a high but stable level, the NBU said, presenting a report on financial stability. The report notes that al...

Friday, December 22

Ukraine launches Plan B due to delayed funding from Western allies.

Ukraine launches Plan B due to delayed funding from Western allies. Finance Minister Serhii Marchenko noted that the ministry is confident of receiving Western aid in 2024 but not in January and February. The EU will consider financial assistance for Ukraine on Februa...

Ukraine received the last part of micro-financial aid from the EU for this year and €20M to support startups. What other help have international partners provided?

Ukraine received the last part of micro-financial aid from the EU for this year and €20M to support startups. What other help have international partners provided? The EU has sent the last €1.5B to Ukraine as part of the macro-financial aid package for 2023. The European Innovation Council will allocate €20M to support Ukrainian Deep Tech developments.About 200 ...

Bankers forecast a 3% decrease in rates for deposits and loans in Ukraine in 2024.

Bankers forecast a 3% decrease in rates for deposits and loans in Ukraine in 2024. Under favorable economic, military, and political conditions in 2024, rates for bank loans and deposits may decrease by an average of 3%, according to the head of Globus Bank, Serhii Mamedov. He assum...

Bankers name the obstacles to attracting foreign investment to Ukraine.

Bankers name the obstacles to attracting foreign investment to Ukraine. The top manager of Ukrsibbank, Dmytro Tsapenko, said: “A new restraining factor that appeared after the war began is currency restrictions, for example, restrictions on the payment of dividends ...

Thursday, December 21

US lawmakers will not vote on aid for Ukraine this year.

US lawmakers will not vote on aid for Ukraine this year. The US Senate will not vote on an additional aid package for Ukraine, which will also require measures to strengthen US border security, until early next year, even as negotiators from both parties co...

Ukraine announced a $4B reduction in external financing needs for 2024.

Ukraine announced a $4B reduction in external financing needs for 2024. The government of Ukraine reduced the amount from $41B to $37.3B, Minister of Finance Serhii Marchenko said during a meeting of the financial leaders from the G7 countries, EU leadership, the IMF, and...

The US offers to transfer frozen Russian assets to Ukraine “in advance,” as part of reparations.

The US offers to transfer frozen Russian assets to Ukraine “in advance,” as part of reparations. According to the FT, although Washington has not publicly supported confiscating frozen assets, politicians have agreed to it privately. It is assumed that the seized assets can be transferred to Ukra...

The EIB allocates almost €100M to Ukraine for recovery.

The EIB allocates almost €100M to Ukraine for recovery. The European Investment Bank has assisted the Ukrainian government with €99.6M to reconstruct about 200 facilities in 18 regions. The funds will be used for capital repairs, reconstruction, and constr...

Wednesday, December 20

The EBRD increases its capital by €4B to continue investment in Ukraine.

The EBRD increases its capital by €4B to continue investment in Ukraine. The heads of the EBRD approved a resolution to increase the bank’s capital by €4B, bringing it to €34B. It is noted that the additional capital will be used to ensure stable investments in Ukrai...

Tuesday, December 19

The IMF is concerned about Ukraine’s delayed financial assistance.

The IMF is concerned about Ukraine’s delayed financial assistance. The head of the IMF, Kristalina Georgieva, believes the West should provide financial aid to Ukraine as soon as possible. In her opinion, Ukraine can cope with the likely short-term financing deficit ...

Monday, December 18

The IMF insists on increasing bank lending to hasten Ukraine’s recovery.

The IMF insists on increasing bank lending to hasten Ukraine’s recovery. In Ukraine, the level of bank lending is low, which is a significant obstacle to the recovery of the country, according to former member of the NBU Council, Bohdan Danylyshyn. Danylyshyn states that, ...

What kind of aid did Ukraine’s allies allocate last week?

What kind of aid did Ukraine’s allies allocate last week? USAID is increasing the total funding of a grant program to support the innovative transformation and development of Ukrainian enterprises to $11M. About 75 grants will now be provided within the prog...

Banks have broken a mortgage record since the beginning of the war.

Banks have broken a mortgage record since the beginning of the war. Ukrainian banks issued 826 mortgage loans worth ₴1.3 billion in October, 1.6% more by the number of loans and 6.8% more in amount than in September, according to a monthly survey of banks. “The ...

Friday, December 15

Following a slowdown in inflation, the NBU lowered the key rate for the fourth time in a row.

Following a slowdown in inflation, the NBU lowered the key rate for the fourth time in a row. The National Bank of Ukraine decided to reduce the discount rate from 16% to 15% per annum starting December 15, 2023. The NBU continued its pattern of lowering the discount rate, which began in July,...

Where will the funds from the five-year, $7B support package from Norway go?

Where will the funds from the five-year, $7B support package from Norway go? Norwegian Prime Minister Jonas Gahr Støre announced four key allocations to Ukraine as part of a five-year support package worth NOK 75B ($7.1B). Funds will be distributed as follows: NOK 135M ($12.79...

Thursday, December 14

The IMF supports a moratorium on Ukraine’s national debt payment until 2027.

The IMF supports a moratorium on Ukraine’s national debt payment until 2027. To that end, the restructuring will be carried out by the middle of 2024, said the head of the IMF mission in Ukraine, Gavin Gray. “An ambitious external commercial debt restructuring should be ...

Ukraine strives to solve its financing problems, but there are risks.

Ukraine strives to solve its financing problems, but there are risks. Kyiv plans to cover its budget deficit primarily through more than $40B in external financing next year. At the same time, more than two-thirds of this amount has not yet been confirmed. Therefore, Uk...

Ukraine will fully settle with the IMF under the 2018 stand-by program.

Ukraine will fully settle with the IMF under the 2018 stand-by program. Ukraine will fully repay the IMF under the 2018 stand-by program, which amounts to $166M at the current exchange rate, said Economist Oleksiy Blinov. According to him, the payment will be provided fro...

Wednesday, December 13

The IMF has revised the forecast for Ukraine’s real GDP growth in 2023 to 4.5%.

The IMF has revised the forecast for Ukraine’s real GDP growth in 2023 to 4.5%. Ukraine’s macroeconomic indicators have been stronger than expected despite the ongoing war. This contributed to the upward revision of the IMF’s forecast for economic growth. The IMF revi...

The EC approves a plan for the use of the Russian Federation’s frozen assets for Ukraine’s benefit.

The EC approves a plan for the use of the Russian Federation’s frozen assets for Ukraine’s benefit. As a high-ranking EU official told journalists at a closed briefing, the European Commission will not publish the proposal but will submit it to the European Council for study and decision-making. The...

Tuesday, December 12

Fitch has confirmed Ukraine’s likely default and improved Ukraine’s GDP growth forecast to 5.1% this year.

Fitch has confirmed Ukraine’s likely default and improved Ukraine’s GDP growth forecast to 5.1% this year. International rating agency, Fitch Ratings, has confirmed Ukraine’s long-term issuer default rating (EDR) in foreign currency at the CC level. Fitch expects the war to continue through 2024. At ...

The Fitch agency is convinced that international financial support for Ukraine will not weaken in 2024.

The Fitch agency is convinced that international financial support for Ukraine will not weaken in 2024. International agency Fitch Ratings expects that international aid to Ukraine for 2024 will be only slightly lower than the amount forecasted for 2023, $43B, despite the political risks associated with...

Ukrainians are increasing their government bond investments.

Ukrainians are increasing their government bond investments. In 2022, the population’s share of the OVDP portfolio increased by ₴5.1B, and in 2023, it increased by ₴20.9B to ₴51.2B. The simplification of purchasing OVDP bonds facilitated this trend. Until recen...

Monday, December 11

Investment companies raise their 2024 economic forecasts for Ukraine.

Investment companies raise their 2024 economic forecasts for Ukraine. Based on 2023’s results, the ICU investment company predicts GDP growth between 5.8% and 5% in the coming year. It is also assumed that at the end of 2023 inflation will be 6.2%. Inflation is expected...

The EU will consider a plan to use revenues from Russia’s frozen assets; Britain supports using these assets to help Ukraine.

The EU will consider a plan to use revenues from Russia’s frozen assets; Britain supports using these assets to help Ukraine. The EC must approve a legal proposal regarding the use of income from Russian assets frozen under sanctions in connection with the Russian Federation’s full-scale invasion. The decision is expected to...

Friday, December 8

A European donor funds control service will operate in Ukraine.

A European donor funds control service will operate in Ukraine. The European Anti-Fraud Coordination Service (AFCOS) will be deployed to monitor the use of money from international donors, said the head of the State Audit Service, Alla Basalayeva. “We will m...

Ukrainian banks increased earnings by 100% compared to the last pre-war year.

Ukrainian banks increased earnings by 100% compared to the last pre-war year. Through ten months of the year, Ukrainian banks earned ₴122.7B, more than twice as much as in the corresponding period of 2021, when their collective profit was ₴58.35B. State-owned PrivatBank and Osc...

Thursday, December 7

In Ukraine, non-transparent capital flows are twice as large as transparent ones.

In Ukraine, non-transparent capital flows are twice as large as transparent ones. According to the Center for Economic Strategy, the share of domestic private constructive capital in Ukraine is about 22%, while corrosive capital is about 46%. Corrosive capital represents opaque cap...

Receiving €50B in aid from the EU will entail an increase in energy tariffs.

Receiving €50B in aid from the EU will entail an increase in energy tariffs. As the EP writes, Ukraine, within the framework of the Ukraine Facility program, must gradually transition to economically justified energy tariffs by the fourth quarter of 2025. “It is necessar...

The Ukrainian government discussed a special investment mechanism within the four-year EU program to reduce financing risks in priority sectors.

The Ukrainian government discussed a special investment mechanism within the four-year EU program to reduce financing risks in priority sectors. On December 4, the Ministry of Economy of Ukraine consulted with an EU delegation regarding Component II of the Ukraine Facility program for 2024-2027. Component II creates a special investment mechan...

Bankers share their forecast for deposit rates through the end of the year.

Bankers share their forecast for deposit rates through the end of the year. By the end of the year, average rates on hryvnia deposits, depending on the term of the deposits, will remain at 14-14.5% per annum, predicts Globus Bank. It is noted that the average return on deposi...

Wednesday, December 6

In November, assets of bankrupt banks were sold in Ukraine for ₴49.4M.

In November, assets of bankrupt banks were sold in Ukraine for ₴49.4M. Last month, Ukraine held 37 auctions to sell the assets of eight banks that were liquidated by the Deposit Guarantee Fund. The winning bids from successful auctions amounted to almost ₴49.4M ($1.35M)....

Revenues from the sale of bonds by the Ministry of Finance in November exceeded payments by more than ₴24B.

Revenues from the sale of bonds by the Ministry of Finance in November exceeded payments by more than ₴24B. For 11 months of the year, borrowing by the Ministry of Finance on the domestic debt market of ₴164.98B in equivalent exceeded payments on bonds of the domestic state loan (OVDP), particularly in Nove...

Monday, December 4

The EU will present a plan for the use of frozen Russian assets, but a few issues still remain.

The EU will present a plan for the use of frozen Russian assets, but a few issues still remain. On December 12, the EC plans to publish a plan to use the profits from more than €200B in frozen Russian Central Bank assets. Several issues still need to be resolved, however, and the EU proposal wil...

Here is the financial assistance Ukraine received last week from its allies:

Here is the financial assistance Ukraine received last week from its allies: The UK will contribute £20M to the Trust Fund for the Support of the Reconstruction and Economy of Ukraine (SURE), launched by MIGA. This contribution will reduce project risks and attract much-needed...

In November, the NBU reduced interventions by 27% and canceled all restrictions on the sale of cash currency.

In November, the NBU reduced interventions by 27% and canceled all restrictions on the sale of cash currency. The net sale of dollars by the National Bank in November, the second month after the transition from a fixed exchange rate regime to managed flexibility, decreased from $3.34B in October to $2.45B in ...

The receipt of international aid lags behind the needs of the Ukrainian budget.

The receipt of international aid lags behind the needs of the Ukrainian budget. The head of a specialized parliament committee, Danylo Hetmantsev reported that $37.43B was received from international partners to finance state budget expenditures this year, including $2B in Novemb...

Friday, December 1

Ukraine has a backup plan for a lack of financial assistance from the West.

Ukraine has a backup plan for a lack of financial assistance from the West. With uncertainty surrounding financial assistance from the US and the EU for the 2024 state budget, Ukraine is working on preparing a plan B, analysts say. They believe that with a reduction in extern...

Ukraine has fulfilled most IMF and EU structural beacons on time, but there are some delays.

Ukraine has fulfilled most IMF and EU structural beacons on time, but there are some delays. During the nine months of the IMF program, requirements have been met for 16 of the IMF’s 23 structural beacons and eight of the 20 conditions under the EU program. The country has neither fulfilled n...

Thursday, November 30

Several US states have profited from providing military support to Ukraine.

Several US states have profited from providing military support to Ukraine. The Biden administration has released data on which states have received the greatest financial benefit from providing military aid to Ukraine. This analysis was done to strengthen support from Republ...

Wednesday, November 29

This fall, Ukrainian consumers’ optimism has fallen to its lowest level since last summer.

This fall, Ukrainian consumers’ optimism has fallen to its lowest level since last summer. The Ukrainian consumer sentiment index decreased by 2.8 points to 79.9 points in October. This is the lowest that the indicator has been since August 2022, when it was 75.3 points. At the same time, t...

The EBRD will provide a €50M guarantee to a Ukrainian bank to support capital investments in technology and equipment modernization.

The EBRD will provide a €50M guarantee to a Ukrainian bank to support capital investments in technology and equipment modernization. Credit Agricole Ukraine signed a €50M risk sharing agreement with the EBRD as part of the Sustainability and Livelihoods program. The bank noted that this will allow it to support capital investments ...

Tuesday, November 28

The European Investment Bank has opened a regional office in Kyiv.

The European Investment Bank has opened a regional office in Kyiv. The EIB announced the opening of a new regional EIB Eastern European representative office in Kyiv. The new regional office will provide enhanced support to Ukraine and Eastern Europe, cooperating and...

Follow us