Finance

Friday, August 11

The EBRD has given the Ukrainian state bank a €60M financing guarantee for Ukrainian business.

The EBRD has given the Ukrainian state bank a €60M financing guarantee for Ukrainian business. PrivatBank and the European Bank for Reconstruction and Development have started cooperation on a risk-sharing program. As part of the program, Ukrainian entrepreneurs from critical industries will re...

Ukraine, with the US’ support, will conduct an audit of American financial aid.

Ukraine, with the US’ support, will conduct an audit of American financial aid. The Accounting Chamber and partners from the US have organized two audits of the US’ direct budget support to Ukraine, according to a relevant document from the Accounting Chamber. It is noted t...

Thursday, August 10

In 2024, military expenditures will remain at this year’s level,

In 2024, military expenditures will remain at this year’s level, as will the need for continued international support, noted Finance Minister Serhiy Marchenko. Next year Ukraine will need more than $40B in international aid. Ukraine needs $42B in foreign financing ...

Wednesday, August 9

During the first half of the year, Ukrainian banks generated record profits.

During the first half of the year, Ukrainian banks generated record profits. The National Bank of Ukraine reported that banking organizations earned UAH 67.6B ($1.85B) in six months, the National Bank of Ukraine reported. Net operating profit before deductions to reserves incr...

What does the Ukraine Plan envisage under the EU €50B program?

What does the Ukraine Plan envisage under the EU €50B program? Deputy Minister of Economy Oleksiy Sobolev said that the plan is a comprehensive document that will become the state’s program of recovery and economic development for the next four years. Initi...

Ukrainian businesses will receive up to €4,000 in micro-grants from EU4Business.

Ukrainian businesses will receive up to €4,000 in micro-grants from EU4Business. 750 companies will receive funds within the framework of the EU4Business program, financed by the EU and the German government. The funds can be used to purchase equipment and raw materials, and to pa...

Tuesday, August 8

The National Bank expects the state budget deficit to grow next year.

The National Bank expects the state budget deficit to grow next year. In July, the regulator lowered its forecast for this indicator to 16.8% of GDP. Thus, considering grants, it is predicted that the consolidated budget deficit will reach UAH 1.28T. In the April report...

Since the war, Ukraine has received a record $66.2B in aid from the US.

Since the war, Ukraine has received a record $66.2B in aid from the US. The military and humanitarian financial aid from the US is the largest single source of aid from an ally of Ukraine. Experts see this amount as a large-scale investment in a US ally that has not been ...

Ukraine’s state budget this year is funded with the allies’ help.

Ukraine’s state budget this year is funded with the allies’ help. According to the Ministry of Finance, the 2023 Ukrainian budget is largely financed by military bonds, loans from international financial organizations, bilateral loans, and grants. So, as of August 4...

The key policy rate in Ukraine will decrease to 18%.

The key policy rate in Ukraine will decrease to 18%. Seven members of the Monetary Policy Committee of the National Bank expect a reduction in the discount rate to 18%-19% at the end of 2023. They are convinced that considering the expected decrease in ...

Interest rates on deposits in the national currency are rising in Ukraine.

Interest rates on deposits in the national currency are rising in Ukraine. In June, after the NBU announced the possibility of lowering the key policy rate, rates on retail deposits of various maturities continued to grow. The weighted average rate on new consumer deposits i...

Friday, August 4

The European Parliament will vote on a new €50B EU program for Ukraine.

The European Parliament will vote on a new €50B EU program for Ukraine. At the end of November, the European Parliament plans to vote on the final text of the new Mechanism to Support the Recovery, Reconstruction, and Modernization of Ukraine, and the first disbursement s...

PrivatBank increased its six-month net profit by almost 400%.

PrivatBank increased its six-month net profit by almost 400%. The state-owned PrivatBank’s net profit for January-June 2023 amounted to UAH 29.75B, which is 370% higher than the figure for the same period in 2022. According to a PrivatBank report, in the s...

Thursday, August 3

Ukrainian-founded crypto exchange platforms lead to billions in losses for the state budget.

Ukrainian-founded crypto exchange platforms lead to billions in losses for the state budget. In the last ten years, the state budget has not received at least UAH 3B in taxes from crypto exchange activities, whose operations have not yet been regulated in Ukraine, said the Economic Security B...

Wednesday, August 2

Ukraine expects at least $37B in international aid in 2024.

Ukraine expects at least $37B in international aid in 2024. In 2023, Ukraine expects $42B in international assistance, and next year it expects at least $37B, said the head of the NBU, Andriy Pishnyi, during an interview for ICTV. He says Ukraine’s budge...

The volume bad loans decreased by UAH 7B in the year’s first half.

The volume bad loans decreased by UAH 7B in the year’s first half. The amount of non-performing loans (NPL) in the banking sector as of July 1, 2023, was UAH 425B, which is UAH 7B lower than the figure on January 1, reported the National Bank. At the same time, the s...

Tuesday, August 1

In July, the Ministry of Finance collected $5.3B in revenue.

In July, the Ministry of Finance collected $5.3B in revenue. Since the beginning of the year, the Ministry of Finance has gathered more than $28B for the budget, and in July alone, $5.3B. Grant funds compose about 25% of the total financial assistance. Among th...

Ukraine’s national debt increased by $3.2 billion in June.

Ukraine’s national debt increased by $3.2 billion in June. The state’s and state-guaranteed debt of Ukraine as of July 1 amounted to $128.8B, increasing in June by $3.2B, reported the Ministry of Finance. According to the latest estimates, Ukraine’...

Friday, July 28

The National Bank cuts the key policy rate to 22%.

The National Bank cuts the key policy rate to 22%. The Board of the National Bank of Ukraine has cut the key policy rate from 25% to 22%, effective 28 July, 2023. Rapid disinflation and sustained stability in FX market conditions has enabled the centr...

The NBU improves its GDP forecast for this year but lowered it for 2024.

The NBU improves its GDP forecast for this year but lowered it for 2024. The national bank expects the Ukrainian economy to grow by 2.9% this year compared to the previous forecast of 2%. The further recovery of Ukraine’s economic activity will be facilitated by the ...

Thursday, July 27

Ukrainian banks plan to ease lending for businesses and the public.

Ukrainian banks plan to ease lending for businesses and the public. In the third quarter of this year, banks plan to ease lending conditions for small and medium-sized businesses, reported the National Bank of Ukraine. The central bank made this decision in response t...

The EBRD expands cooperation with Ukraine’s KredoBank.

The EBRD expands cooperation with Ukraine’s KredoBank. The EBRD is supporting food security and other critical industries in wartime Ukraine with a new risk-sharing agreement for KredoBank and opening a TFP limit for guarantees and cash advances to enhanc...

Wednesday, July 26

Ukraine’s GDP growth in the last 12 months increased by 20%.

Ukraine’s GDP growth in the last 12 months increased by 20%. Ukraine’s GDP growth in the second quarter of 2023 compared to the second quarter of 2022 was about 20-21%, reported the Institute for Economic Research and Policy Consulting (IER). In the month...

Monday, July 24

The number of loans taken out with state guarantees doubled in June.

The number of loans taken out with state guarantees doubled in June. In June, banks issued 2,116 loans under the state guarantee program on a portfolio basis, which is over 100%, or 1,129 loans, more than in May, reported the Ministry of Finance. The volume of issued l...

Ukraine has completed the nationalization of Sense Bank.

Ukraine has completed the nationalization of Sense Bank. Ukraine’s Ministry of Finance completed the nationalization of Sense Bank JSC from foreign stakeholders controlled by Russian businessmen, including Mikhail Fridman and Petr Aven. Sense Bank was...

Friday, July 21

The NBU might allow a flexible exchange rate for the dollar even before the end of the war.

The NBU might allow a flexible exchange rate for the dollar even before the end of the war. According to the Deputy Chairman of the National Bank, Serhii Nikolaychuk, last week the strategy of softening currency restrictions, a transition to a flexible exchange rate, and a return to inflatio...

Ukraine has nationalized Sense Bank, the former Alfa Bank.

Ukraine has nationalized Sense Bank, the former Alfa Bank. The National Bank of Ukraine has decided the financial institution will become the state’s property. The bank had been the largest bank in Ukraine, which belonged to sanctioned Russians, namely ...

Thursday, July 20

Fitch has confirmed the likely default of the Ukrainian energy company.

Fitch has confirmed the likely default of the Ukrainian energy company. The Fitch Ratings agency confirmed the long-term default rating for the NEC Ukrenergo electricity system company at the CC level (probable default) and the priority unsecured rating of its $825M in st...

Wednesday, July 19

The National Bank says that currency restrictions are losing their effectiveness and restraining economic activity.

The National Bank says that currency restrictions are losing their effectiveness and restraining economic activity. According to Volodymyr Lepushynskyi, director of the Department of Monetary Policy of the NBU, the disadvantages of this mechanism has begun to exceed the advantages. He added that fixing the exchange...

The EBRD provides a €20M guarantee to a Ukrainian leasing company to support food security.

The EBRD provides a €20M guarantee to a Ukrainian leasing company to support food security. OTP LEASING will use a guarantee from the EBRD to provide €80M in financing that will support food security and other critical sectors, the EBRD noted. The guarantee will allow OTP LEASING to support ...

Tuesday, July 18

Ukraine’s Eurobonds value reached their maximum since the beginning of the war.

Ukraine’s Eurobonds value reached their maximum since the beginning of the war. The value of the Eurobonds of Ukraine jumped by an average of 13% last week and reached the maximum values since the beginning of the full-scale war. According to Western analysts, the quotations of d...

Monday, July 17

The EU is arguing over the mechanism of using the Russian Federation’s frozen assets for Ukraine’s reconstruction of Ukraine.

The EU is arguing over the mechanism of using the Russian Federation’s frozen assets for Ukraine’s reconstruction of Ukraine. Differences of opinion arose between the European Commission and the European Central Bank regarding the use of profits from the investment of more than €200B in frozen assets belonging to the Russian...

Ukraine has managed to finance all key budget expenditures.

Ukraine has managed to finance all key budget expenditures. “We directed all taxes from citizens and businesses to ensure the defense and security of our country,” said Prime Minister Denys Shmyhal. He specified that for January-June, the general f...

Ukrainian banks break five-year profitability records.

Ukrainian banks break five-year profitability records. During the first five months of the year Ukrainian banks earned UAH 53.59B, 120% more than the corresponding period in 2021, according to Opendatabot. It is noted that this is the best result in at le...

Naftogaz completes its restructuring of defaulted bonds.

Naftogaz completes its restructuring of defaulted bonds. The company officially offered bondholders a possibility to restructure their bonds maturing in July 2022 and November 2026, on which the company defaulted last year. The issuer of the securities, Kon...

Thursday, July 13

The NBU explained why inflation in Ukraine is falling rapidly and what risks can change the trend.

The NBU explained why inflation in Ukraine is falling rapidly and what risks can change the trend. In June, consumer inflation in annual terms slowed to 12.8%. “The slowdown was caused by a greater supply of food and fuel, a decrease in world prices on commodity markets, and an improvement in...

Ukraine will help the EU develop a digital wallet.

Ukraine will help the EU develop a digital wallet. The Ukrainian Diia digital service team will participate in developing the European digital wallet. According to Ukraine’s Ministry of Digitization, this decision was made during a meeting of t...

Tuesday, July 11

The EU has presented its conditions for the new €50B financing package for Ukraine.

The EU has presented its conditions for the new €50B financing package for Ukraine. The country’s authorities must fulfill several requirements to implement the Financial Instrument for Ukraine (Ukraine Facility) from the EU, which provides financing of up to €50B for four year...

Friday, July 7

Fitch updated PrivatBank’s rating to CCC-.

Fitch updated PrivatBank’s rating to CCC-. Fitch Ratings has affirmed Joint-Stock Company Commercial Bank PrivatBank’s Long-Term Foreign-Currency Issuer Default Rating (IDR) at CCC- and Long-Term Local-Currency (LTLC) at CCC. The Viabili...

Thursday, July 6

Fitch changed the ratings of two Ukrainian state banks.

Fitch changed the ratings of two Ukrainian state banks. The international rating agency, Fitch Ratings, raised the stability ratings of two state banks of Ukraine – Oschadbank and Ukrgasbank – and confirmed the rating of another state bank R...

Wednesday, July 5

How military risk insurance will cover investment in Ukraine.

How military risk insurance will cover investment in Ukraine. When a person insures property against risk, they make payments to the company that are directly proportional to the probability of the risk event occurring. If the risk is realized, the insurer cover...

Tuesday, July 4

Ukrainians must insert a phone number to replenish their debit cards with cash.

Ukrainians must insert a phone number to replenish their debit cards with cash. Starting August 1, cash deposits through ATM terminals require the payer to enter a mobile phone number. Such norms are stipulated by the resolutions of the board of the National Bank, On Amendments t...

Monday, July 3

The EU will tax profits on frozen Russian Central Bank assets.

The EU will tax profits on frozen Russian Central Bank assets. EU leaders are backing plans that would impose a windfall tax on profits generated by more than €200B in Russian Central Bank assets to aid Ukraine’s reconstruction and will seek political support fro...

The volume of non-performing loans in banks decreased by UAH 7B.

The volume of non-performing loans in banks decreased by UAH 7B. The share of non-performing loans (NPL) in the banking sector fell to 39.1% on June 1 compared to 39.3% at the beginning of May, reported the press service of National Bank. In May, the volume of non-...

The Ukrainian budget received over UAH 245B ($6.7B) in June.

The Ukrainian budget received over UAH 245B ($6.7B) in June. According to parliament member Yaroslav Zheleznyak, the budget received UAH 245B and fulfilled all the monthly government needs. Through its internal resources, the state received: UAH 52.1B from tax,...

Friday, June 30

The IMF approves a decision to allocate $890M to Ukraine.

The IMF approves a decision to allocate $890M to Ukraine. The IMF approved the decision to allocate another tranche to Ukraine within the framework of the extended financing program in the amount of $890 million. “The Executive Board of the IMF complet...

The NBU approves a strategy for easing FX restrictions and will transition to more exchange rate flexibility.

The NBU approves a strategy for easing FX restrictions and will transition to more exchange rate flexibility. “The strategy consists of three main components. These are the easing of currency restrictions, the transition to greater flexibility of the exchange rate, and the return to the principles of inflatio...

Thursday, June 29

Half of the loans for green energy are non-performing.

Half of the loans for green energy are non-performing. The green energy crisis is causing losses for banks – the share of non-performing loans in the industry rose to 51% at the beginning of May, compared to less than 3% before the invasion says a F...

A new reform: A tax office without tax officers and a customs office without customs officers.

A new reform: A tax office without tax officers and a customs office without customs officers. President Volodymyr Zelenskyy promises a radical reform of the tax and customs services, tax reduction, and minimization of contacts between officials and citizens but in exchange for the closure of t...

The NBU revises its forecast for credit losses from 30% to 20% due to the war.

The NBU revises its forecast for credit losses from 30% to 20% due to the war. According to National Bank, this year, banks have sharply reduced the formation of reserves after showing significant losses from credit risk last year. Since the war began, banks have suffered losses...

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