Finance

Tuesday, September 12

Since the war began, bonds tied to Ukraine’s GDP have increased in value to the highest level.

Since the war began, bonds tied to Ukraine’s GDP have increased in value to the highest level. The price of Ukraine’s GDP warrants, according to the results of the September 8 auction, increased by approximately two percentage points – up to 49.2% of the nominal value. This is the h...

Ukraine will start raising taxes on banks first if the IMF requests higher taxes.

Ukraine will start raising taxes on banks first if the IMF requests higher taxes. As of today, the Ministry of Finance does not foresee changes in the tax system anytime soon, and there is no need to talk about tax increases, Minister of Finance Serhiy Marchenko said at the EBA Glo...

Monday, September 11

Ukraine and the WB reviewed the project portfolio for the first time since 2021.

Ukraine and the WB reviewed the project portfolio for the first time since 2021. The volume of the joint project portfolio with the World Bank is currently the largest it has been over all the years of cooperation. As the Ministry of Finance specified, it consists of 20 existing p...

A Belgian bank received more than €1.7B in profit from Russian frozen assets, and Estonia plans to be the first in the EU to confiscate such assets.

A Belgian bank received more than €1.7B in profit from Russian frozen assets, and Estonia plans to be the first in the EU to confiscate such assets. As reported by Euroclear, the €1.74B in profit was from the first half of 2023. The Belgian bank’s management believes “It is necessary to separate estimated sanctions-related earnings fr...

Ukraine is preparing to turn a state bank into a development bank.

Ukraine is preparing to turn a state bank into a development bank. The goal is to turn one of the state banks into a development bank, similar to KfW in Germany, said the head of the Parliamentary Committee on Finance, Danylo Hetmantsev, during the Yalta European Str...

Friday, September 8

Fitch Ratings confirms Ukrainian Railways’ insufficient creditworthiness.

Fitch Ratings confirms Ukrainian Railways’ insufficient creditworthiness. The rating agency confirmed UZ’s long-term CC credit rating, which corresponds to Ukraine’s current sovereign credit rating. The agency raised UZ’s standalone credit profile CCC- to CC, th...

Ukraine’s annual military expenditures are estimated at UAH 3T.

Ukraine’s annual military expenditures are estimated at UAH 3T. Of this amount, UAH 1.6T is for the security and defense sectors, said the newly appointed Minister of Defense, Rustem Umerov, on September 6. As he noted, the budget’s revenue totals UAH 1.4T, ...

Billion-dollar US aid package for Ukraine includes $5.4M from Russian oligarchs, and the EU is preparing to transfer €3B to Ukraine from frozen Russian reserves.

Billion-dollar US aid package for Ukraine includes $5.4M from Russian oligarchs, and the EU is preparing to transfer €3B to Ukraine from frozen Russian reserves. For the first time since the beginning of the war, the US will transfer Ukraine assets confiscated from sanctioned Russian oligarchs, said US Secretary of State Antony Blinken. The assets total around...

Europe, ahead of the US, doubles the aid promised to Ukraine.

Europe, ahead of the US, doubles the aid promised to Ukraine. By July 31, the total amount of assistance provided and pledged by European donors had increased to €156B, compared to about €70B from the US, according to a Kiel Institute of the World Economy study....

Thursday, September 7

Ukraine will receive $232M for emergency housing repairs under the World Bank’s HOPE project.

Ukraine will receive $232M for emergency housing repairs under the World Bank’s HOPE project. On September 5, a corresponding agreement was signed between the Ministry of Finance of Ukraine and the World Bank within the Housing Repair for People’s Empowerment – HOPE project with a ...

Due to reduced international aid, Ukraine’s international reserves decreased by 3.2% in August.

Due to reduced international aid, Ukraine’s international reserves decreased by 3.2% in August. As of September 1, the aid volume was about $40.4B, dropping by $1.4B in August, the National Bank reported on Wednesday. The reason for the decrease was the NBU’s FX sales to cover the differen...

Wednesday, September 6

The war in Ukraine has provoked “budget battles” in the EU.

The war in Ukraine has provoked “budget battles” in the EU. The financing of Ukraine accounts for half of the almost €100B that the European Commission is asking to allocate in order to strengthen the EU budget for 2021-2027. The other half will be divided amo...

The European Parliament has proposed an audit of the EU Fund for Ukraine.

The European Parliament has proposed an audit of the EU Fund for Ukraine. The Budget Control Committee of the European Parliament published a proposal on the use of EU budget funds of the €50B EU Ukrainian Fund. The document contains recommendations for an agreement between...

The NBU expands the list of reserve bonds and reported on income from the sale of securities.

The NBU expands the list of reserve bonds and reported on income from the sale of securities. Starting September 11, the National Bank will increase the list of benchmark bonds of the domestic state loan, through which banks can cover part of their required reserves, the regulator said in a st...

The EBRD will issue a €182M loan to repair the main export artery from Ukraine to Poland.

The EBRD will issue a €182M loan to repair the main export artery from Ukraine to Poland. The EBRD will redirect a €182M loan to the State Agency for Reconstruction and Development of Infrastructure of Ukraine to repair the section of the M-09 road from Lviv to Rava-Ruska on the Ukrainian-...

Foreigners can open a business and pay taxes in Ukraine online.

Foreigners can open a business and pay taxes in Ukraine online. As the Ministry of Digitization reported, the government adopted a resolution that defines the mechanism for a foreigner to obtain e-resident status online. The tool for paying taxes and reporting for...

Tuesday, September 5

The US wants to send $1B of seized Russian assets to Ukraine.

The US wants to send $1B of seized Russian assets to Ukraine. These are assets that the United States has found and seized in other countries over a year and a half, US Deputy Attorney General Lisa Monaco said. “We detained planes in Switzerland and the Mi...

Ukraine’s state budget deficit increased to almost UAH 131B in August.

Ukraine’s state budget deficit increased to almost UAH 131B in August. The state budget deficit in August 2023 amounted to UAH 130.7B, compared to UAH 107.6B in July, the Ministry of Finance reported. It is noted that cash expenditures in the state budget increased signi...

The EU and Germany have prepared three grant packages for Ukrainian businesses.

The EU and Germany have prepared three grant packages for Ukrainian businesses. The European Union and the German government announced three waves of grants for micro, small, and medium-sized businesses through the EU4Business program on a joint initiative. In particular, the Big...

Friday, September 1

The Ministry of Finance has announced the main financial indicators for the 2024-2026 budgets.

The Ministry of Finance has announced the main financial indicators for the 2024-2026 budgets. The Ministry of Finance has published instructions for preparing budget requests for the next year. The document suggests setting the dollar exchange rate at UAH 41.4 to $1 for the 2024 state budget p...

Thursday, August 31

Ukraine has fulfilled another IMF beacon: the new Financial Sector Development Strategy.

Ukraine has fulfilled another IMF beacon: the new Financial Sector Development Strategy. This blueprint for developing the financial sector during the war envisages inflation at a level of less than 15% and possible deviations of the hryvnia to dollar cash rate from the official rate belo...

The European Parliament discusses the provision of €50B to Ukraine by 2027.

The European Parliament discusses the provision of €50B to Ukraine by 2027. According to the Representative of the Committee on Foreign Affairs, Michael Gahler, the new document envisages the combination of Ukraine’s reconstruction process and accession to the EU. Accor...

Wednesday, August 30

Budget disputes in the EU threaten further aid to Ukraine.

Budget disputes in the EU threaten further aid to Ukraine. EU funding to support Ukraine is being held back by disagreements between member states, while concerns about strained national budgets and rising spending in Brussels threaten the flow of financial a...

Ukraine has eased currency restrictions to strengthen the national currency.

Ukraine has eased currency restrictions to strengthen the national currency. As of August 29, banks are now allowed to sell non-cash foreign currency without confirming the grounds or obligations for such a transaction, the NBU reported. The National Bank specified that this a...

The upward trend in bank deposit rates declined due to the NBU’s reduced key policy rate.

The upward trend in bank deposit rates declined due to the NBU’s reduced key policy rate. Ukrainian banks began to retreat from record high deposit rates on consumer deposits after the NBU beganits discount rate reduction cycle in July, when it was reduced from 25% to 22%, according to ind...

Tuesday, August 29

The non-bank financial sector in Ukraine is slowly recovering, and credit unions have managed to increase their assets.

The non-bank financial sector in Ukraine is slowly recovering, and credit unions have managed to increase their assets. This has happened for the first time in two years, according to a review of the non-banking financial sector for the second quarter of 2023. The volume of life insurers’ assets during the report...

Monday, August 28

Ukraine and the EU have passed the second preparation stage for the five-year, €50B program.

Ukraine and the EU have passed the second preparation stage for the five-year, €50B program. According to the Minister of Economy, Yulia Svyridenko, at the previous meeting the parties agreed on the structure and distribution of topics. This time, attention was focused on the form in which th...

National Bank assets increased by 17%, and profit reached UAH 43B.

National Bank assets increased by 17%, and profit reached UAH 43B. The result of the NBU’s activities, according to the results of the first half of the year, was a net profit of more than UAH 43B ($1.17B), and the bank’s assets increased by 17% to UAH 2....

The Ukrainian Parliament has proposed a new tax for banks, providing UAH 10B to the budget.

The Ukrainian Parliament has proposed a new tax for banks, providing UAH 10B to the budget. The parliament’s tax committee is preparing a draft law that allows for additional taxation of net interest income or excess bank profits. “Most likely, the new law will come into effect i...

Thursday, August 24

The Biden administration is convinced that Congress will approve additional aid for Ukraine.

The Biden administration is convinced that Congress will approve additional aid for Ukraine. US Presidential adviser Jake Sullivan indicated that additional funding for Ukraine will be secured despite the refusal of some Republicans in the House of Representatives. “Both in the House of...

The popularity of microcredits is growing in Ukraine.

The popularity of microcredits is growing in Ukraine. As well, there is a decrease in the average loan amount, reported Opendatabot. In the first half of the year, 3.8 million microloans were issued for a total of UAH 18.4B. For comparison, in 2022 Ukrai...

The EU continues working on a €50B multi-year plan of Ukrainian support,

The EU continues working on a €50B multi-year plan of Ukrainian support, European Council President Charles Michel said at the third summit of the Crimean Platform. He emphasized that the EU stands by Ukrainians in their battle for freedom. “Russia’s brutal att...

Wednesday, August 23

The processing industry has become the leading budget contributor.

The processing industry has become the leading budget contributor. Through the first seven months of the year, the industry paid 17.1% of taxes and fees collected from enterprises across all sectors, the Tax Service reported. Also, processing companies showed the hig...

Ukraine received another €1.5B in macro-financial assistance from the EU.

Ukraine received another €1.5B in macro-financial assistance from the EU. As the Ministry of Finance reports, this is the seventh tranche within the framework of the EU’s large-scale macro-financial assistance program with loan repayment in 35 years. As well, the EU w...

Monday, August 21

The US will appoint an inspector to monitor financial aid to Ukraine.

The US will appoint an inspector to monitor financial aid to Ukraine. Members of the Republican Party in the US Congress may ask for an inspector to be appointed to oversee the funding of aid to Ukraine to “prevent corruption”. This situation develops soon a...

Friday, August 18

Ukraine is technically ready for the first international exchange of tax information.

Ukraine is technically ready for the first international exchange of tax information. As reported by the Ministry of Finance, the development of software for the State Tax Service of Ukraine (DPS) has been completed, which will provide an international automatic exchange of information...

Thursday, August 17

The US State Department has urged Congress urgently to allocate an additional $24B to Ukraine.

The US State Department has urged Congress urgently to allocate an additional $24B to Ukraine. According to US Secretary of State Antony Blinken, Congress should immediately approve additional funding for military, economic, and humanitarian aid to Ukraine. He also assured the Ukrainian people ...

The EU will transfer €135M to Ukraine that had been intended for Russia and Belarus.

The EU will transfer €135M to Ukraine that had been intended for Russia and Belarus. As reported by the European Commission, the €135M had been allocated to finance the Interreg NEXT programs with Russia and Belarus during 2021-2027, but it was decided to transfer the funds to Ukraine...

British companies risk their accounts being closed due to trade with Ukraine.

British companies risk their accounts being closed due to trade with Ukraine. Since part of Ukraine is occupied by the Russians, the British banks HSBC, Santander UK, and others may over-insure and close business accounts, explaining this by the need to comply with sanctions ag...

Ukraine is in the top five world leaders for contactless payments.

Ukraine is in the top five world leaders for contactless payments. For the past five years, Ukraine has consistently been among the top ten countries regarding the number of NFC payments. As noted by Mastercard, the share of payments with smartphones and NFC devices ...

The yield on deposits in Ukraine is growing, and lending is recovering.

The yield on deposits in Ukraine is growing, and lending is recovering. In the second quarter, due to the NBU’s measures, banks will continue to increase interest rates on time deposits. According to the bank, on average, the return on a three-month individual depos...

Wednesday, August 16

A Polish logistics company has transferred €100M worth of assets from Russia to Ukraine and is investing €250M in the economic exchange program between Ukraine and the EU.

A Polish logistics company has transferred €100M worth of assets from Russia to Ukraine and is investing €250M in the economic exchange program between Ukraine and the EU. As the company reported, the transferred assets were all previously located in Russia and the countries of Central Asia. Among other things, the transfer included 510 specialized railway platforms and...

Germany is ready to allocate €5B every year to support Ukraine.

Germany is ready to allocate €5B every year to support Ukraine. Minister of Finance Christian Lindner shared the German government’s plans during his visit to Kyiv. However, the government’s decision must be approved by the Bundestag. Note that the par...

Dragon Capital is considering buying the nationalized Sense Bank.

Dragon Capital is considering buying the nationalized Sense Bank. According to the CEO of Dragon Capital, Tomas Fiala, the company is studying the possibility of acquiring the bank if Ukrainian authorities decide to sell it. Bloomberg notes that after the nationaliz...

What consumer prices and dollar exchange rates do Ukrainians expect?

What consumer prices and dollar exchange rates do Ukrainians expect? According to the NBU, both financial analysts and the public expect a slowing trend to the growth of consumer prices. Financial analysts in July predicted that inflation would be 12% over the next 12 ...

Ukraine’s energy regulator plans to resume debt repayments to clean energy producers.

Ukraine’s energy regulator plans to resume debt repayments to clean energy producers. The National Commission for Regulation of the Energy Market has approved changes to a resolution approving legal acts that regulate the activities of the Guaranteed Buyer and the purchase of electrici...

Tuesday, August 15

The German finance minister arrived in Kyiv for the first time since the beginning of the war to discuss support.

The German finance minister arrived in Kyiv for the first time since the beginning of the war to discuss support. The Prime Minister of Ukraine, Denys Shmyhal, discussed with the German Finance Minister, Christian Lindner, the prospects of Ukraine’s cooperation with the Credit Institution for Reconstruction...

The parliament talks about future tax changes in Ukraine.

The parliament talks about future tax changes in Ukraine. As part of their work on the National Revenue Strategy up to 2030, the Committee on Finance, Tax and Customs Policy is preparing proposals for changes in five priority areas of taxation, said the head...

Monday, August 14

The National Bank is easing currency restrictions in Ukraine.

The National Bank is easing currency restrictions in Ukraine. The NBU introduced additional measures to prevent unproductive outflow of capital from Ukraine and ensure the foreign exchange market’s stability. Thus, from August 12, 2023, the NBU will introd...

Ukrainian Eurobonds rose by 50% against investors’ optimistic expectations.

Ukrainian Eurobonds rose by 50% against investors’ optimistic expectations. According to the FT, dollar-denominated bonds maturing in September 2025 are now trading at 31 cents on the dollar, compared to 20 cents in early June. Other foreign currency bonds also recorded simil...

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