The EU will change the current system of financing military support to Ukraine in response to Hungary. The EU plans to change its system of Ukrainian military support to bypass a Hungarian veto, circumventing the country that is loyal to the Russian Federation. On October 9, EU ambassadors are expected... #EuropeanPeaceFund #HungaryVeto #LoanForUkraine #MilitaryAidforUkraine #RussianAssetsProfits #SupportUkraine
The Ministry of Finance explains the importance of the historic tax increase. All the tax revenue in the state budget is directed to the security and defense sector, but even that is not enough. The Ministry of Finance noted that the balance is covered through other sources, in... #BudgetDeficit #DefenseSpending #TaxesUkraine #UkraineBudget2024 #UkraineEconomy
Scholz assured Ukraine of further support and promised it would receive a loan of $50B. Can the funds go to the military? German Chancellor Olaf Scholz has assured Ukraine that it will receive a $50B loan secured by frozen Russian assets, and Kyiv’s support from its allies will not weaken. Scholz describes the loan... #LoanForUkraine #OlafScholz #RoksolanaPidlasa #RussianAssetsProfits #SupportUkraine
The new state agency providing military risk insurance will stimulate investment in Ukraine. The NBU and the Ministry of Economy presented a draft law on the war risk insurance system, which provides for the protection of insurance interests of individuals and legal entities, aimed at ensurin... #InsuranceUkraine #investments #UkraineEconomy #WarRiskInsurance
Piraeus Bank joins leaders from the business community to discuss strategic planning at the War & Business event hosted by UBN. Piraeus Bank in Ukraine has reinforced its commitment to supporting business resilience and economic planning through its role as the general sponsor of the recent War & Business: Planning for an ... #AlessandroZanelli #IevgeniiIvanytsia #OliverGierlichs #PiraesuBankUkraine #PiraeusBank #UBNnetwork #UkraineBusinessNetwork #ukrainebusinessnews #War&Business #YannisKyriakopoulos
The US is directing more than $1B to humanitarian support and the energy system’s restoration in Ukraine. USAID Administrator Samantha Power reported that more than 250,000 people in our country need rehabilitation support during her third visit to Ukraine since the full-scale war began. Therefore, USAID ... #EnergyRestore #HumanitarianAid #Rehabilitation #SamanthaPower #SupportUkraine #USAID
The final adoption of a bill raising taxes may negatively affect the economy: Businesses offer an alternative. The current version of the draft law provides for an increase in the military tax from 1.5% to 5%, a 50% tax on bank profits in 2024, and 25% for non-bank financial institutions. The bill foresees add... #ReformsinUkraine #ShadowEconomy #TaxesinUkraine #UkraineBudget #UkraineBudgetDeficit #UkraineEconomy
The EC explains what the allocation of $50B to Ukraine depends on. In order to finalize a $50B loan for Ukraine, secured by frozen Russian assets, the EU and the G7 countries must make a political commitment to participate in this initiative at the end of October, sa... #G7 #LoanForUkraine #ULCM #ValdisDombrovskis
What is holding back the €35B EU loan for Ukraine? The European Commission’s initiative to provide Ukraine with a €35B loan, which will be repaid with income from frozen Russian assets, is not supported by some key EU countries. The loan is inte... #G7 #LoanForUkraine #RussianAssetsProfits #SupportUkraine
What are the NBU’s plans regarding the key policy rate? Almost all (10 out of 11) of the NBU’s Monetary Policy Committee members support keeping the discount rate at 13%. The NBU notes that the majority believes that the current rate level provides n... #AndriiPyshnyi #financeUkraine #InflationinUkraine #KeyPolicyRate #nbu #UkraineEconomy
Ukraine will receive hundreds of millions in loans from Canada and the Bank of Korea. Ukraine plans to obtain a loan from the Export-Import Bank of Korea for up to $100M and has finalized the primary conditions for the state’s external borrowing. These funds will be directed to t... #BankOfKorea #Canada #HealUkraine #LoanForUkraine #SouthKorea
The state program of preferential business lending positively affects the economy but needs improvement. As of January 1, 2024, the state’s debt to banks under the 5-7-9% Available Loans program amounted to ₴7.1B, and barring changes, by the end of 2024 this figure may reach ₴11.5B, according to th... #5-7-9loanprogram #AffordableLoans #BankLoans #financeUkraine #LoansforBusiness #UkraineEconomy
The Polish export credit agency, for the first time, has insured an investment in Ukraine. KUKE, Poland’s export credit agency, insured a Polish company’s production complex in Ukraine for more than $45 million. This is the first cooperation between KUKE and the World Bank Group... #InvestmentsinUkraine #KUKE #MIGA #URC2024 #WarRiskInsurance
Ukrainians are taking out mortgages more actively: Banks are issuing ₴1.2B monthly in loans. Ukrainian banks issued 694 mortgage loans for a total amount of ₴1.2B in July, which is ₴200M ($5M) more than in June, the National Bank reports. The volume of consumer mortgage loans issued in July 2... #AffordableLoans #eOselya #kyiv #MortgageProgram #MortgagesUkraine #Львів
Ukrainians are increasing their debt – lending increased by 5.3%. In the second quarter, financial services companies and pawnshops showed an increase in the volume of basic types of services, even against a total reduction of assets by 12.3%. Credit unions and life... #BankLoans #financeUkraine #MicroCrediting #nbu #PawnShops #UkrainiansDebt
The US Congress nears an agreement on the remaining $5.8B set aside for Ukraine; the Pentagon promises to release the entire amount. Democrats and Republicans in the US Congress have almost agreed on a one-year extension of the deadline for the US administration to spend $5.8B that have been previously allocated for Ukrainian milit... #PDA #Pentagon #SabrinaSingh #UScongress #USmilitaryAid
Ukrainian authorities call on the EU to increase aid to Ukraine in the new 2028-2034 EU budget to €400B. The Prime Minister of Ukraine, Denys Shmyhal, made this proposal at a meeting with the President of the European Commission, Ursula von der Leyen. “We expect to launch a financial instrument for... #DenysShmyhal #EUbudget #LoanForUkraine #SupportUkraine #UkraineFacility #UrsulavonderLeyen
Ukraine will restructure government derivatives tied to GDP growth rates. Yuriy Butsa, the government commissioner for public debt management, notes that Ukraine issued GDP warrants in 2015. According to the terms, any GDP growth above 3% per year triggers payments to warra... #Creditors #financeUkraine #GDPinUkraine #GDPwarrants #UkraineBond #UkraineEconomy
The National Bank of Ukraine kept the key policy rate unchanged at 13%. This decision will contribute to the gradual return of inflation to the 5% target in the following years and support the foreign exchange market’s stability, the NBU reported. It is also aimed a... #financeUkraine #foreignexchangemarket #InflationinUkraine #KeyPolicyRate #nbu #UkraineEconomy
The US and the EU cannot agree on the details to provide $50B to Ukraine; the plan’s success is logistically and politically unlikely. The NYT notes that officials from the US and the EU are trying to secure a $50B loan for Ukraine by the end of the year. A decision should be reached before the presidential elections in the US, which... #EuropeanUnion #G7 #HungaryVeto #LoanForUkraine #Sanctions #USelections #WhiteHouse
The EU will provide Ukraine with up to €40B in new loans by the end of the year, regardless of the US’ decision. The FT writes that unilateral actions are taking place against the background of Brussels’ concern that Hungary will prevent the bloc from providing the guarantees the US needs to participate in... #G7 #HungaryVeto #LoansForUkraine #RussianAssetsProfits
Russia spends a record $317M per day on war in Ukraine. In the first half of 2024, the Russian Federation spent a record ₽5.3T on its military, according to the German Institute for International Security and Affairs. Compared to the same period last year,... #DefenseSpendingRussia #RussiaBudget #RussianEconomy #WarinUkraine
The IMF will decide on the next tranche for Ukraine in the coming weeks but keeps insisting on mobilizing domestic revenues for critical expenses. The IMF Executive Board plans to consider the issue of approving the results of the EFF program’s fifth revision and the allocation of the next tranche to Ukraine within a few weeks, IMF spokesw... #imf #JulieKozack #TaxesUkraine #UkraineBudget #UkraineBudgetDeficit
The Ministry of Finance of Ukraine will hold auctions to exchange OVDP bonds. The Cabinet of Ministers, as part of the implementation of the Medium-Term Strategy for State Debt Management for 2024-2026, approved a resolution that allows the MoF to carry out bond-swap operations... #financeUkraine #OVDP #UkraineBond #ukrainedebt
Ukraine will use interest from Russian assets to strengthen its defense capabilities. The EC proposes freezing the Russian central bank’s assets for five years in exchange for a $50B loan. “The Ministry of Defense of Ukraine plans to use these funds to purchase the necessary resources and means of protection that will help strengthen national security”, said Deputy Defense M... #DmytroKlimenkov #EuropeanCommission #MilitaryAidforUkraine #RussianAssetsProfits #RussianCentralBank
The yield on deposits in Ukraine is falling, and loans are becoming cheaper. The average bank interest rates on new hryvnia consumer deposits in August amounted to 10.6% per annum, which is 0.1 percentage point lower than a month ago, NBU data shows. Interest rates on new cons... #BankDeposits #BankLoans #financeUkraine #nbu #UkrainianBanking
The IMF agrees to provide Ukraine with another $1.1B, but there are conditions. After the IMF’s Executive Board approves this agreement, Ukraine will receive another $1.1B tranche. As of the end of June, Ukraine has fulfilled all quantitative criteria and structural beacons... #GavinGray #imf #IMFStructuralBeacons #ReformsinUkraine #Ukrenergo
Russia lost its case to unblock €70B in the EU, so the funds can now be used to help Ukraine. The Russian National Settlement Depository has lost its case to remove EU sanctions imposed in connection with its role in financing the war. The depository came under EU sanctions in 2022 when the bl... #Euroclear #RussianAssets #RussianAssetsArrested #RussianCentralBank
External aid to Ukraine in August exceeded the monthly state budget expenditure by 100% but only partially covered for previous financing shortfalls. According to the Center for Economic Strategy, aid from international partners amounted to $8.5B in August. In particular, $4.5B was provided by the European Union ($1.6B in grants, the rest soft loan... #BudgetDeficit #financialaidforUkraine #GrantsforUkraine #SupportUkraine #UkraineBudget2024
The National Bank eased currency restrictions for businesses starting September 10. Beginning on September 10, Ukrainian businesses will be able to: Purchase and transfer foreign currency to cover carbon dioxide emissions. State-owned enterprises can buy currency and transfer it to ... #CurrencyRestrictions #foreigncurrency #internationalReserves #nbu #ukrainianbusiness
After Ukraine’s successful debt restructuring, the Fitch agency raised the country’s hryvnia rating. The rating agency Fitch Ratings, after the completion of Eurobond debt restructuring, raised the long-term issuer default rating (IDR) of Ukraine in local currency to CCC+ from CCC- and confirmed the ... #CreditRatingUkraine #DefaultUkraine #Eurobond #FitchRatings #ukrainedebt #UkraineEconomy
Ukrainian banks increased their profits by 22%, with one of them accounting for 40% of the total amount. The total profit generated by Ukrainian banks for the first seven months of the year is ₴119.44B, which is 22% more than in the same period last year. Along with earnings, income tax increased by 80% ... #financeUkraine #MTBbank #PrivatBank #UkraineBanksProfits #UkraineEconomy #UkrainianBanks
Kamala Harris’ potential victory has slowed the issuance of a $50B loan to Ukraine. The rapid popularity of US presidential candidate Kamala Harris worsened the prospects for a quick agreement on the terms of a $50B loan to Ukraine. As Politico explains, before President Joe Biden dr... #JoeBiden #KamalaHarris #LoanForUkraine #RussianAssetsArrested #RussianAssetsProfits #USelections
Maintaining the discount rate level is necessary to develop lending and deposit programs. In autumn, against the background of increasing inflation, it will be essential to maintain the discount rate at 13% and the rate for 3-month deposit certificates at 16%, according to finance experts.... #DepositsInterestRate #financeUkraine #KeyPolicyRate #UkraineBankingSector #UkraineEconomy
Ukrainians are increasing their investment in government bonds: The share is already 4%. In August 2024, the Ministry of Finance raised ₴29.1B from the issuance of government bonds. Military bonds accounted for ₴6B of the total volume of government bonds issued in August. As of September ... #financeUkraine #investments #nbu #OVDP #UkraineBond
The EU is not in a rush to provide Ukraine with the $50B loan secured by Russian assets, though Kyiv desperately needs it. The EU has still not taken the necessary steps to fulfill the agreement with the G7 and provide Ukraine with about $50B, secured by revenues from the Russian Federation’s assets, by the end of the yea... #G7 #LoanForUkraine #ReparationsForUkraine #RussianAssets #RussianAssetsProfits
Ukraine completed its $20.5B Eurobond restructuring, reducing the national debt by $9B. The restructuring process included the exchange of 13 series of government Eurobonds and one series of state-guaranteed Ukravtodor Eurobonds worth about $20.5B, approximately $24B including capitalize... #DebtRestructuring #Eurobond #UkraineBudget #ukrainedebt #ukravtodor
The IMF pushes Ukraine to raise taxes and depreciate the hryvnia, with $1.1B in new financial aid at stake. Ukrainian officials expect the IMF this week to push the country toward faster currency devaluation, lower interest rates, and to increase tax collection efforts to close the country’s budget de... #BudgetDeficit #financeUkraine #hryvniadevaluation #imf #nbu #UkraineBudget
Ukraine has doubled its national debt, and here is what will happen next. During the 2.5 years of the full-scale war, Ukraine’s public debt has increased by 130% in hryvnia equivalent (+₴3.644B), and in foreign currency by 66% (+$62B). “Despite everything, the d... #DanyloHetmantsev #DebtRestructuring #UkraineBudget2024 #ukrainedebt
Fitch Ratings assesses Ukrainian Railway’s financial condition. International rating agency Fitch Ratings raised the long-term default ratings of the issuer Ukrzaliznytsia (UZ) and its $894.9M in Eurobonds from C to CC. Despite a high probability of default, anal... #CreditRatingUkraine #FitchRatings #UkrainianRailways
Ukraine will receive the second tranche of EU aid from the proceeds of Russian Federation assets by March 2025 , promises the head of European diplomacy, Josep Borrell. He also notes that the European Union has already allocated the first €1.4B tranche of revenue from frozen Russin assets through the European ... #AidforUkraine #RussianAssetsForUkraine #RussianFronzenAssets
The Ukrainian parliament proposes an alternative plan to cover the ₴500B defense deficit. The budget committee of the Verkhovna Rada proposed and provided support for its solution to raise funds for the Defense Forces: reducing debt expenditures, placing bonds, and exceeding the tax collec... #BudgetDeficit #UkraineBudgetDuringWar #UkraineBudgetNeeds
Ukraine is working to legalize cryptocurrency to fill its coffers. The legalization of cryptocurrency can become a practical alternative when looking for new sources of tax revenue, according to Deputy Minister of Digital Transformation Oleksandr Bornyakov. At the sa... #CryptoCurrencyUkranie #CryptoLegalization
In August, the Ukrainian budget received $8.4B in external support, and 65% of the funds do not have to be repaid. In August, the state budget’s general fund received about $8.4B in external financing. As noted by the Ministry of Finance, $5.5B comprised grants (65%), and $2.9B arrived through preferential f... #AidforUkraine #financialaidforUkraine #UkraineBudget
Why is successful debt restructuring so important for Ukraine? The debt restructuring agreement that was reached with creditors is a very important step that demonstrates the creditors understand Ukraine’s needs, said ex-Minister of Finance of Ukraine Natal... #DebtOfUkraine #DebtRestructuring #GDPwarrantsOfUkraine
Over 97% of Eurobond holders support Ukraine’s restructuring planthat will save the country $11.4B. The Ministry of Finance of Ukraine said that 97.38% of holders of $20.47B ($24.3B including interest) in Eurobonds support the restructuring agreement, exceeding the required two-thirds threshold. &#... #eurobonds #ukrainebonds #UKraineGDPwarrants
Ukraine has stopped servicing GDP warrants and some other external obligations. The Cabinet of Ministers adopted a resolution suspending the servicing of Ukraine’s obligations to several creditors under loans and Eurobonds and obligations under GDP warrants. In particular, ... #ukrainedebt #UKraineGDPwarrants #UkraineStopedServicingDebt
Ukraine is concerned about the delay in the provision of a $50B loan secured by Russian assets. As Bloomberg says, these funds should arrive in Kyiv by the end of the year, according to the June G7 “agreement”, which provides that the loan will be repaid using the profits from more t... #AidforUkraine #DelayedAidForUkraine #Zelenskyy
Ukraine has extended the early consent period deadline for the exchange of Eurobonds. Ukraine announced a four-day extension – until the evening of August 27 – of the deadline for early consent to the exchange of Eurobonds within the framework of their restructuring, which provides the... #eurobonds #ukrainebonds
What awaits bank depositors through the end of the year? Inflation is forecast to be within 5-6% from September to December. Considering current deposit rates, individual depositors can not only protect their funds from depreciation but also receive a 3-4% ... #BankDeposits #Lending #UkraineBankingSector
