Finance

Monday, April 24

By the end of the year, Ukraine’s banks will likely sell over UAH 100B worth of debt at auctions,

By the end of the year, Ukraine’s banks will likely sell over UAH 100B worth of debt at auctions, said the founder of the Investohills group of companies, Andriy Volkov. According to Volkov, banks will have to discount NPLs in order to sell 50-70% of them along with the rest of their portfolios, b...

Since the war in Ukraine started, the fortunes of Russian billionaires have increased by 33%.

Since the war in Ukraine started, the fortunes of Russian billionaires have increased by 33%. The wealth of Russia’s richest people increased by $152B over the past year as a result of high prices for natural resources. That windfall enabled them to overcome the huge losses they suffered...

Thursday, April 20

The United States plans to send Russian assets to Ukraine.

The United States plans to send Russian assets to Ukraine. The US Justice Department wants more authority from Congress to give Ukraine money obtained from the seizure and sale of wealthy Russians’ assets, Deputy Attorney General Lisa Monaco said. The departm...

A Lithuanian energy company will share extra profits with Ukraine, and Shell has been asked to do the same.

A Lithuanian energy company will share extra profits with Ukraine, and Shell has been asked to do the same. The Lithuanian company Ignitis Group, with headquarters in Vilnius, has decided to direct 10%, or €12M, of surplus profits to Ukraine’s restoration, said Energy Minister Herman Galushchenko. The compa...

Wednesday, April 19

Ukrainians believe that taxes and customs hinder business development in their country.

Ukrainians believe that taxes and customs hinder business development in their country. Half of Ukrainians, 50.7%, believe that most entrepreneurs are law-abiding, so the tax and customs authorities should catch violators and not prevent honest entrepreneurs from working. This data was p...

The EBRD has provided a €42M loan to Cersanit to support its business in Ukraine and Poland.

The EBRD has provided a €42M loan to Cersanit to support its business in Ukraine and Poland. The leading Polish ceramic tile and bathroom equipment manufacturer, Cersanit, is said to have significant capacity in Ukraine and is expected to play an essential role in rebuilding the infrastructur...

Friday, April 14

The EU keeps looking for legal avenues to confiscate frozen Russian assets.

The EU keeps looking for legal avenues to confiscate frozen Russian assets. A special working group should find out more precisely where Russian state assets are located and their total value. About $300B of assets from the Russian central bank are frozen in the G7 countries....

The US Treasury has called on the West to continue providing substantial aid to Ukraine and promises to provide new grants by September.

The US Treasury has called on the West to continue providing substantial aid to Ukraine and promises to provide new grants by September. The US Treasury Secretary Janet Yellen voiced the this position during her speech at the beginning of the ministerial meeting regarding Ukraine at the IMF spring meetings. According to Yellen, the Ukr...

Thursday, April 13

The US is confident that the funds from Ukraine’s allies will be enough until the end of the year.

The US is confident that the funds from Ukraine’s allies will be enough until the end of the year. US Treasury Secretary Janet Yellen expressed this opinion in an address to the participants at the IMF and the World Bank spring meetings in Washington. According to IMF representative Gavin Gray, if ...

The President’s office has announced a plan for the receipt of $100B in seized Russian Federation assets.

The President’s office has announced a plan for the receipt of $100B in seized Russian Federation assets. Ukrainian authorities seek to receive about $100B over five to seven years from the sale of Russian sovereign assets seized worldwide, said chief consultant Oleg Havrysh. Recent estimates of Ukraine&#...

The World Bank has announced $200M in grant financing for a project that will repair Ukraine’s energy infrastructure.

The World Bank has announced $200M in grant financing for a project that will repair Ukraine’s energy infrastructure. The Ukraine Relief, Recovery, Reconstruction and Reform Trust Fund provides the funds for this project, with additional funding of up to $300M envisaged from partners through grants and other contrib...

Deposits and loans are becoming more expensive in Ukraine.

Deposits and loans are becoming more expensive in Ukraine. In March 2023, the average bank interest rates for new hryvnia deposits increased for the population and amounted to 11.4% per annum, 0.6% higher than a month earlier (10.8%). According to the NBU, ra...

Demand for government bonds fell to UAH 2.4B.

Demand for government bonds fell to UAH 2.4B. On April 11, the Ministry of Finance raised UAH 2.37B (equivalent) for the state budget at auctions for the sale of military bonds of the domestic state loan. Only UAH 94.89M was received from the sal...

Wednesday, April 12

The Ukrainian government will nationalize Sense Bank.

The Ukrainian government will nationalize Sense Bank. In the first reading, the Ukrainian Parliament voted in favor of a draft law to allow the National Bank to start the nationalization of Sense Bank (formerly Alfa-Bank), announced the first deputy chai...

Ukraine’s Ministry of Finance and the IFC will expand the public-private partnership to rebuild and support Ukrainian businesses.

Ukraine’s Ministry of Finance and the IFC will expand the public-private partnership to rebuild and support Ukrainian businesses. On April 10, Minister of Finance of Ukraine Serhiy Marchenko met with the International Finance Corporation (IFC) Director Makhtar Diop. The parties discussed the prospects of expanding cooperation be...

The Central Bank of Ukraine is working on creating an insurance system for military and political risks.

The Central Bank of Ukraine is working on creating an insurance system for military and political risks. The NBU has already prepared an initial concept, which should become the basis for the future draft law, said the First Deputy Head of the Central Bank, Kateryna Rozhkova. She explained that due to th...

Naftogaz and the GTS Operator will report their financial results to the IMF.

Naftogaz and the GTS Operator will report their financial results to the IMF. According to the text of a memorandum of understanding, information on the cash flows of both companies must be submitted to the IMF no later than the 25th of the following reporting month. The report...

Tuesday, April 11

NovaPay will issue 3-year bonds worth UAH 100M at 20% annually.

NovaPay will issue 3-year bonds worth UAH 100M at 20% annually. On April 14, the Ukrainian postal and courier company’s payment system NovaPay will begin public placement of the debut issue of three-year bonds for UAH 100M ($2.73M). The bonds are issued with one c...

Monday, April 10

S&P Global Ratings has lowered Ukraine’s rating amid debt restructuring.

S&P Global Ratings has lowered Ukraine’s rating amid debt restructuring. The Rating agency lowered Ukraine’s long-term sovereign credit ratings in foreign currency to negative, from CCC+ to CCC. The downgrade follows Ukraine’s official announcement of a restruc...

The IMF’s demand: Ukraine will develop its domestic securities market to avoid “printing” of the hryvnia.

The IMF’s demand: Ukraine will develop its domestic securities market to avoid “printing” of the hryvnia. The goal of a working group is to develop the domestic debt market with the participation of representatives from the National Bank and the Ministry of Finance. The group was created to implement a me...

A risk distribution mechanism will protect capital investments in Ukraine.

A risk distribution mechanism will protect capital investments in Ukraine. The Deputy Minister of Economy of Ukraine, Oleksandr Hryban, confirmed that negotiations with international donors are underway to create a trust fund (referred to as an insurance pool). The fund will...

Friday, April 7

Ukraine’s international reserves have reached the highest level since 2011.

Ukraine’s international reserves have reached the highest level since 2011. In March, Ukraine’s reserves increased by 10.4% to $31.9B, reported the National Bank of Ukraine. The central bank explained that reserves increased because of fund allocations from international part...

Wednesday, April 5

Ukrainians are buying less foreign currency from banks.

Ukrainians are buying less foreign currency from banks. In March 2023, the population of Ukraine sold $1.388B in cash and non-cash currency to commercial banks and bought $1.812.3B. The net currency purchase amounted to $424.3M. Thus, according to the Nati...

The Ukrainian budget deficit in March decreased to UAH 59.2B from UAH 88.8B in February.

The Ukrainian budget deficit in March decreased to UAH 59.2B from UAH 88.8B in February. According to the Ministry of Finance the state budget operated during the first three months of the year with a deficit of UAH 220.3B ($6.1B). At the same time, the actual state borrowing for the budg...

Last year, the number of bank clients in Ukraine increased by 10%, reaching more than 79 million people.

Last year, the number of bank clients in Ukraine increased by 10%, reaching more than 79 million people. At the same time, the number of institutions decreased from 71 to 67, according to the National Bank of Ukraine. The number of accounts opened by clients increased by 12.8% compared to the previous ye...

Tuesday, April 4

The new $15.6B IMF program contains 10 fiscal and 4 anti-corruption structural benchmarks.

The new $15.6B IMF program contains 10 fiscal and 4 anti-corruption structural benchmarks. More than half of the required tasks are related to taxation, and others are devoted to the fight against corruption. The nearest fiscal beacon is a law taking effect by May to increase state budget e...

The National Bank of Ukraine will begin diagnostics of banks in April.

The National Bank of Ukraine will begin diagnostics of banks in April. This year there will be two stages: an asset quality assessment and sustainability of business model analysis, Deputy Head of the NBU Kateryna Rozhkova said. She clarified that the procedure’s p...

Monday, April 3

The IMF Board of Directors has approved a new four-year $15.6B extended financing program for Ukraine.

The IMF Board of Directors has approved a new four-year $15.6B extended financing program for Ukraine. This program is part of the overall $115B package of Ukrainian support from its international partners. The first tranche of $2.7B is expected to arrive in a few weeks. After that, other tranches will...

Wednesday, March 29

Ukraine will receive a second installment of budget aid from the US.

Ukraine will receive a second installment of budget aid from the US. Ukrainian Prime Minister Denys Shmyhal said the government will receive an additional $2.5B from the United States as a grant to help with state services such as salaries and benefits. The budgetary s...

The WB is considering additional assistance to restore Ukraine’s agricultural sector.

The WB is considering additional assistance to restore Ukraine’s agricultural sector. At a meeting with the Minister of Agricultural Policy of Ukraine, Mykola Solskyi, and the leadership of the World Bank, discussions were held regarding both the creation of new programs and financing ...

The NBU encourages banks to raise interest rates on household deposits.

The NBU encourages banks to raise interest rates on household deposits. To encourage this, beginning May 11 the National Bank of Ukraine will equate the standards for the formation of mandatory reserves by banks with individual deposits for up to three months to the crite...

Dollar bond sale adds UAH 17.4B in state budget revenue.

Dollar bond sale adds UAH 17.4B in state budget revenue. On March 28, the Ministry of Finance sold military bonds of the domestic state loan and attracted UAH 17.39B to the state budget. According to the Ministry, UAH 28.15M was received from selling annual...

Tuesday, March 28

In 2023, the government will pay the NBU more than UAH 80B in bond interest payments.

In 2023, the government will pay the NBU more than UAH 80B in bond interest payments. The National Bank of Ukraine expects to receive UAH 81.7B in coupon payments for military bonds purchased from the Ministry of Finance in 2022 if the discount rate remains at 25%, the bank said. From ...

Ukraine has significant demand for dollars, and the foreign exchange market still depends on interventions.

Ukraine has significant demand for dollars, and the foreign exchange market still depends on interventions. This conclusion was reached by the members of the Monetary Policy Committee of the National Bank of Ukraine on March 15, when they decided to keep the discount rate at 25%. It is noted that the high l...

The Dutch Development Bank lost €137M in Ukraine due to war.

The Dutch Development Bank lost €137M in Ukraine due to war. Of this amount, €82M is a loan loss, and €50M results from capital investments. The bank’s annual report notes that the Dutch Development Bank (FMO) has been actively working in Ukraine for deca...

Monday, March 27

The EU will use frozen Russian assets for the benefit of Ukraine.

The EU will use frozen Russian assets for the benefit of Ukraine. The EU is studying its legal options for the use of frozen Russian currency reserves, including their investment to obtain profits that will be directed to Ukraine’s restoration, writes Politico. Unde...

The Government of Ukraine approved a memorandum with the IMF and its G7 creditors – loan guarantees and postponement of debt payments until 2027.

The Government of Ukraine approved a memorandum with the IMF and its G7 creditors – loan guarantees and postponement of debt payments until 2027. The Cabinet of Ministers of Ukraine approved the government’s and the National Bank’s draft letter of intent to the IMF and the draft Memorandum on Economic and Financial Policy. Minister ...

The IMF predicts a challenging year for the global economy.

The IMF predicts a challenging year for the global economy. According to the Fund, risks to financial stability have increased. 2023 will be another difficult year, where global growth will slow to below 3% due to the pandemic’s consequences, the war in Ukrain...

Friday, March 24

Naftogaz Ukraine provided creditors with a working scenario for debt restructuring.

Naftogaz Ukraine provided creditors with a working scenario for debt restructuring. During an online meeting with investors, the company proposed a working plan for resolving the situation with 2022 and 2026 Eurobonds. Naftogaz and financial advisor Lazard Frères SAS are currently pr...

Thursday, March 23

The Swiss parliament proposes the allocation of more than €5B for Ukraine.

The Swiss parliament proposes the allocation of more than €5B for Ukraine. The Committee on Foreign Policy of the National Council of Switzerland has proposed to the Federal Council to submit to the parliament a program of support for Ukraine in the amount of at least 5B Sw...

Ukraine and the IMF have agreed on a four-year, $15.6B program.

Ukraine and the IMF have agreed on a four-year, $15.6B program. As the IMF specified, the agreement still has to be approved by the Fund’s Board of Directors in the coming weeks. The program’s goal is to maintain fiscal, external, and financial stabili...

Ukraine’s foreign debts have grown to 90% of GDP, and the balance of payments deficit has increased despite Western aid.

Ukraine’s foreign debts have grown to 90% of GDP, and the balance of payments deficit has increased despite Western aid. Ukraine’s gross foreign debt increased by $2.3B in 2022 and amounted to $132B at the end of last year. Concerning the GDP, the amount of debt increased over the year from 64.6% to 89% of its tot...

Foreign investors can only withdraw interest on Ukrainian government bonds abroad.

Foreign investors can only withdraw interest on Ukrainian government bonds abroad. The National Bank of Ukraine will only allow foreign investors to withdraw interest on OVDPs received after April 1, 2023. The central bank postponed the decision on repatriating the principal amount ...

Wednesday, March 22

The Ministry of Finance has increased revenues from the sale of bonds to UAH 5.6B.

The Ministry of Finance has increased revenues from the sale of bonds to UAH 5.6B. On March 21, the Ministry of Finance attracted UAH 5.6B to the state budget at auctions for the sale of military bonds for the domestic state loan, thanks to the placement of currency bonds. According...

Banks in Ukraine can double deposit rates for the public.

Banks in Ukraine can double deposit rates for the public. This will not significantly impact banks, particularly the total cost of funding, according to deputy head of the NBU Kateryna Rozhkova. She notes that in December, hryvnia liabilities in the banking ...

Tuesday, March 21

Automatic exchange of financial information between countries has been introduced in Ukraine.

Automatic exchange of financial information between countries has been introduced in Ukraine. The Ukrainian parliament has supported a draft law that introduces two international standards for transparency and information exchange: the general standard for reporting and due diligence on financ...

The NBU has received a second international Central Banking Award.

The NBU has received a second international Central Banking Award. Ukraine’s central bank received recognition for Initiative in the field of payment and market infrastructure for its work in developing the state remote identification system, BankID. The system prov...

State-owned Ukrgasbank increased its net profit by four-fold.

State-owned Ukrgasbank increased its net profit by four-fold. In January-February 2023 Ukrgazbank netted UAH 489M in profit, which is four times more than in January-February last year, the bank reported. It is noted that the volume of net assets increased for J...

Monday, March 20

The IMF has changed their rules to allow a program for Ukraine.

The IMF has changed their rules to allow a program for Ukraine. The Board of Directors of the International Monetary Fund approved changes in the policy of the Fund’s financial guarantees. This decision will make it possible to approve a new credit program f...

Since the war, Ukrainian banks have built up reserves and increased profitability.

Since the war, Ukrainian banks have built up reserves and increased profitability. In 2022 the banking sector accumulated UAH 119B in their collective accounts. This is a 35-fold jump compared to the UAH 3.4B accumulated in 2021, according to data from opendatabot. Only 10% of banks...

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