Finance

Tuesday, May 30

Ukraine continues increasing its public debt.

Ukraine continues increasing its public debt. In April, it grew by UAH 160B as tranches of loans from the IMF and the European Union arrived. According to the Ministry of Finance, as of April 30 Ukraine’s state and state-guaranteed debt exc...

Ukraine is restoring the Micro-crediting market.

Ukraine is restoring the Micro-crediting market. Statistics from the national bank show that in the first three months of 2023, Ukrainian debt to microfinance organizations increased to UAH 8.7B. Compared with the last quarter of 2022, the amount an...

During the war, Ukrainians began to look towards instruments including shares in foreign companies, agricultural land, and real estate.

During the war, Ukrainians began to look towards instruments including shares in foreign companies, agricultural land, and real estate. According to minfin, the number of people willing to experiment with Eurobonds is due to high profitability in euros. A little more than 20% of the respondents’ potential future investment portf...

Ukraine plans to restore pre-war taxation to implement their IMF program.

Ukraine plans to restore pre-war taxation to implement their IMF program. In the first reading, the parliament supported changes to the Tax Code of Ukraine and other laws regarding the specifics of taxation during the martial law period. Their goal is to restore the taxatio...

Ukraine will join the Development Bank of the Council of Europe.

Ukraine will join the Development Bank of the Council of Europe. The Ukrainian parliament adopted a law to allow Ukraine to become a member of the CEB, which will contribute to developing new housing and social infrastructure programs and provide opportunities to a...

Monday, May 29

Ukraine plans to participate in the EU’s single market financial support program.

Ukraine plans to participate in the EU’s single market financial support program. The Single Market Program is a seven-year, €4.2B financial support program that provides an opportunity to strengthen and increase the transparency of the single market and ensure the development of i...

The Minister of Finance of Ukraine met with representatives of the World Bank, IMF, and IFC to discuss funding for the reconstruction.

The Minister of Finance of Ukraine met with representatives of the World Bank, IMF, and IFC to discuss funding for the reconstruction. Serhii Marchenko discussed this during the meetings of the member countries of the IMF and the World Bank in Montenegro. He reminded the participants that Ukraine needs $14.1B for recovery this year i...

Friday, May 26

Since the beginning of the year, the Ukrainian state budget has received UAH 3.2B from Google tax.

Since the beginning of the year, the Ukrainian state budget has received UAH 3.2B from Google tax. According to the state tax committee, in 2022 Ukraine collected UAH 4.3B in Google tax. In the first quarter alone, companies paid UAH 1.9B in value-added tax on operations to provide electronic servi...

Analysts predict that government spending on IT will grow by 7.6% this year.

Analysts predict that government spending on IT will grow by 7.6% this year. Spending will amount to about $590B, predicts research company Gartner Inc. The company’s survey of IT directors found that 57% of government executives plan to increase funding for application ...

The NBU says that interest rates on deposits will continue to rise.

The NBU says that interest rates on deposits will continue to rise. The head of the National Bank of Ukraine, Andriy Pyshnyi, announced this forecast, noting that the projected discount rate will be higher than the current level of banks’ deposit rates for a lon...

Thursday, May 25

Ukrainians are not afraid to take their money to the bank; there are already UAH 2T in deposits.

Ukrainians are not afraid to take their money to the bank; there are already UAH 2T in deposits. As of May, the total deposit volume of Ukrainian businesses and consumers is UAH 1.97T, 33% more than last year and almost 50% more than in 2021, reported Opendatabot. The commercial deposit amount is...

The NBU will discuss easing currency restrictions with the IMF.

The NBU will discuss easing currency restrictions with the IMF. On May 23, the IMF mission began preparations for the first review of the EFF program with Ukraine. The National Bank said that during negotiations special attention will be paid to the gradual easing...

The European Central Bank is preparing for a digital euro.

The European Central Bank is preparing for a digital euro. The European Central Bank is preparing a project for a digital version of the euro, responding to pressure from emerging technologies that could change how money is exchanged in the future, reported A...

Tuesday, May 23

The Central Bank of Ukraine has presented a new strategy to maintain financial stability.

The Central Bank of Ukraine has presented a new strategy to maintain financial stability. The NBU has developed a new institutional strategy, Financial Fortress of Ukraine, which considers the influencing factors of the Russian invasion on the functioning of the financial system and is foc...

Monday, May 22

Ukraine will receive $3B from international donors for social payments and reconstruction.

Ukraine will receive $3B from international donors for social payments and reconstruction. On May 19, the government of Ukraine accepted additional funding from the International Bank for Reconstruction and Development (IBRD) and the International Development Association (IDA). This is a gr...

Friday, May 19

Norway and the Netherlands provided the EBRD with €170M to help Ukraine, but the bank has asked for more money.

Norway and the Netherlands provided the EBRD with €170M to help Ukraine, but the bank has asked for more money. The bank reported that Norway had allocated NOK 1.5B to support the activities of the EBRD to strengthen energy security in Ukraine, the bank said. This grant continued Norway’s NOK 2B (€195M) g...

The yield on deposits is growing, and loan rates have stabilized.

The yield on deposits is growing, and loan rates have stabilized. Ukrainian banks continue to compete for clients’ funds, raising deposit rates for both individuals and businesses, the NBU Banking Sector Survey notes. On average, the value of 12-month deposits...

Ukraine has joined the database of income statistics of the Organization for Economic Cooperation and Development.

Ukraine has joined the database of income statistics of the Organization for Economic Cooperation and Development. As noted by the Ministry of Finance, Ukraine has become the 121st country that submits information to the largest open source of income data. It is noted that tax and non-tax budget revenues from all ...

Thursday, May 18

Ukraine will receive billions in aid from South Korea.

Ukraine will receive billions in aid from South Korea. On May 17, Ukraine and South Korea signed a preliminary intergovernmental agreement on loans from the Economic Development and Cooperation Fund (EDCF). Economy Minister Yulia Svyridenko said that Ukra...

Wednesday, May 17

The Pentagon is running out of money for weapons for Ukraine.

The Pentagon is running out of money for weapons for Ukraine. Only about $6B remains in the $48B aid package for Ukraine that Congress approved in December. This means that US funding for weapons and supplies could end by mid-summer, writes Politico. As a result...

The US supports the Ukrainian economy with grants, while the EU mainly provides loans.

The US supports the Ukrainian economy with grants, while the EU mainly provides loans. According to the Growford Institute, from the beginning of 2023, the leaders in providing Ukraine with financial, humanitarian, and military aid are the US (€71.3B), Great Britain (€9.8B), Germany (€7...

Ukrainian business receive constant support to keep the economy alive.

Ukrainian business receive constant support to keep the economy alive. According to the Ministry of Economy, another 323 Ukrainians will receive UAH 77M worth of microgrants from the state for starting and developing businesses under the Own Business program. Since the b...

Tuesday, May 16

Trade and the mining industry are the highest taxpayers in Ukraine.

Trade and the mining industry are the highest taxpayers in Ukraine. In the first four months of the year, the consolidated budget received UAH 67.7B ($1.85B) in taxes, where 87.1% of all revenues, almost UAH 59B, originated from several branches of the national econom...

The Ukrainian government will ease restrictions for businesses.

The Ukrainian government will ease restrictions for businesses. According to EBA, the NBU currently understands that currency restrictions are gradually exhausting their function, and the macroeconomic situation in the country is stabilizing. Because of this, the ...

Monday, May 15

Germany will provide Ukraine with a record €2.7B in military aid.

Germany will provide Ukraine with a record €2.7B in military aid. According to the German Ministry of Defense, this is the largest single package of weapons Germany has provided to strengthen the Ukrainian armed forces since the beginning of the war. The head of the...

The G7 finance ministers have announced $44B in increased support for Ukraine and new sanctions against Russia.

The G7 finance ministers have announced $44B in increased support for Ukraine and new sanctions against Russia. It is noted that similar support from the Big Seven allowed approval of the IMF’s four-year program for Ukraine, enabling Ukrainian authorities to ensure the government’s function, continue to ...

Friday, May 12

The US has approved the transfer of a Russian oligarch’s confiscated assets to Ukraine.

The US has approved the transfer of a Russian oligarch’s confiscated assets to Ukraine. For the first time, the United States authorized the confiscation of the assets of a Russian oligarch with their subsequent transfer to be applied to the restoration of Ukraine. The FT writes about th...

The European Commission has legal grounds to use the assets of the Russian Federation for the reconstruction of Ukraine.

The European Commission has legal grounds to use the assets of the Russian Federation for the reconstruction of Ukraine. According to spokesperson Christian Wiegand, the European Commission has confirmed that it has developed legally acceptable options for the use of Russian assets, both private and state, for Ukraine’s...

Wednesday, May 10

Ukraine will launch a private insurance market for military risks.

Ukraine will launch a private insurance market for military risks. The war risk insurance mechanism is available today from several international financial institutions, including MIGA of the World Bank Group and the American Development Finance Corporation (DFC), wh...

Tuesday, May 9

The NBU is considering the reduction of the key policy rate due to improved FX market conditions.

The NBU is considering the reduction of the key policy rate due to improved FX market conditions. The noticeable improvement of the foreign exchange market has been caused not only by the seasonal increase in the supply of currency by farmers and the decrease in demand for energy imports but also ...

Friday, May 5

Ukraine’s international reserves have grown to 11-year high.

Ukraine’s international reserves have grown to 11-year high. In April, Ukraine’s reserves increased by 12.8%, or $4B, to $35.9B, according to the NBU. The regulator explained that reserves increased due to aid received from international partners, a further dec...

Thursday, May 4

At the Lugano Business Forum on May 11-12, participating businesses will discuss Ukraine’s reconstruction.

At the Lugano Business Forum on May 11-12, participating businesses will discuss Ukraine’s reconstruction. Lugano, Switzerland is where the Conference on the Reconstruction of Ukraine was held in July 2022 and will host the first Lugano Business Forum on May 11-12. The forum will gather representatives fro...

Ukraine implemented one of the IMF’s structural beacons.

Ukraine implemented one of the IMF’s structural beacons. The President of Ukraine, Volodymyr Zelenskyy, signed a law on the use of funds from accounts designated for the support of Ukraine. The launch of this law became the second implemented structural bea...

Wednesday, May 3

The military bonds have generated UAH 429B for the state treasury,

The military bonds have generated UAH 429B for the state treasury, the National Bank said. In April 2023, payments on bonds of the domestic state loan exceeded borrowing on the domestic debt market by UAH 6.3B. At the same time, during January-April the corresponding...

Problem loans are accumulating in Ukrainian banks.

Problem loans are accumulating in Ukrainian banks. As of April 1, the share of non-performing loans in bank portfolios was 38.8% and increased by 0.7% during the last quarter. The volume of problem loans amounted to UAH 434B and increased by UAH 2B in...

Ukrainians are buying significantly less foreign currency in banks.

Ukrainians are buying significantly less foreign currency in banks. In April 2023, the population of Ukraine sold $1.3B in cash and non-cash funds to commercial banks and bought $1.5B. According to National Bank data, the net purchase of currency amounted to $224.2M. ...

Tuesday, May 2

The IMF promotes conditions for post-war Ukraine’s stable and long-term economic growth.

The IMF promotes conditions for post-war Ukraine’s stable and long-term economic growth. Ukraine should strengthen the mobilization of domestic revenues to finance social and infrastructure needs, according to the permanent representative of the IMF in Ukraine, Vahram Stepanyan. “Fo...

For the first time in 1.5 years, Ukrainian business has improved its assessment of its prospects.

For the first time in 1.5 years, Ukrainian business has improved its assessment of its prospects. For the first time since October 2021, the Business Activity Expectations Index rose to 51.5 points in April from 49.5 in March and crossed the neutral level (50 points), according to a study by the N...

One of the largest chains of gas stations in Ukraine has attracted a €25M loan from the Black Sea Trade and Development Bank.

One of the largest chains of gas stations in Ukraine has attracted a €25M loan from the Black Sea Trade and Development Bank. The OKKO gas station network and BSTDB agreed to open a revolving credit line of up to €25M. The money will be used to purchase petroleum products, including in the countries from the Black Sea region...

Monday, May 1

The Central Bank has reduced the sale of reserves to a minimum due to the fall in demand for foreign currency.

The Central Bank has reduced the sale of reserves to a minimum due to the fall in demand for foreign currency. In April 2023, the National Bank of Ukraine bought $3.7M on the interbank foreign exchange market and sold $1.374B. The negative balance amounted to $1.37B. According to the regulator, currency sales ...

The largest domestic postal delivery operator will provide financial services in Ukraine and the EU.

The largest domestic postal delivery operator will provide financial services in Ukraine and the EU. Nova Poshta’s payment system NovaPay received an extended license from the National Bank of Ukraine. Now NovaPay has the opportunity to provide new services to individuals and businesses: open a...

Friday, April 28

The Central Bank kept the prime rate at 25% and improved its economic forecast.

The Central Bank kept the prime rate at 25% and improved its economic forecast. The Board of the National Bank decided to keep the discount rate at 25% per annum, the Chairman of the Board of the NBU, Andriy Pishniy, said. The NBU noted that the updated macro forecast foresees th...

The IMF requests a stability check for the 20 largest banks in Ukraine.

The IMF requests a stability check for the 20 largest banks in Ukraine. The National Bank has started assessing the strength of 20 banks, the leaders in the aggregate of assets, deposits, and individual loans. These bank’s total amount of net assets is more than 90% of th...

Thursday, April 27

Ukraine expects another €1B in economic aid from Italy.

Ukraine expects another €1B in economic aid from Italy. Prime Minister Denys Shmyhal said he expects €1B in financial support from the Italian export credit agency, SACE, to restore the economy and infrastructure and finance basic Ukrainian humanitarian an...

Banks increase lending and ease requirements for borrowers.

Banks increase lending and ease requirements for borrowers. Banks have significantly improved their expectations regarding the development of lending in Ukraine. In the second quarter bankers predict an increase in demand for retail loans and mortgages most of...

Investors’ demand for Ukrainian bonds has increased.

Investors’ demand for Ukrainian bonds has increased. The Ministry of Finance placed state bonds worth UAH 16.3B. There was demand for government bonds denominated in both hryvnias and US dollars. The Ministry of Finance placed one-year hryvnia bonds at ...

Wednesday, April 26

EU sent the third €1.5B tranche of microfinance aid, increasing the total aid to €6B in 2023.

EU sent the third €1.5B tranche of microfinance aid, increasing the total aid to €6B in 2023. Previously, Ukraine received the first tranche of €3B in January 2023, and the state budget received the second tranche of €1.5B in March. Thus, the volume of direct 2023 budget support from the EU ha...

Last year, aid from international partners provided 27% of Ukraine’s budget revenues.

Last year, aid from international partners provided 27% of Ukraine’s budget revenues. According to the 2022 state budget report, as noted by the Ministry of Finance, state budget revenues amounted to almost UAH 1.8 trillion, a significant portion of which was UAH 481.1B in grants from ...

Tuesday, April 25

Fitch still foresees a potential Ukrainian capital default.

Fitch still foresees a potential Ukrainian capital default. The international rating agency, Fitch Ratings, has quoted Kyiv’s long-term issuer default rating (IDR) in foreign currency at CC and the national currency at CCC-. According to the agency count...

Ukrainians are increasingly confident in the stability of the hryvnia and prices.

Ukrainians are increasingly confident in the stability of the hryvnia and prices. In March 2023, the Consumer Sentiment Index in Ukraine increased by 4.6 points to 91.2 points, according to monthly research from InfoSapiens. The current situation’s index increased by 3.4 points and...

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