Finance

Friday, March 17

During the war, the EU provided has €50B in aid to Ukraine.

During the war, the EU provided has €50B in aid to Ukraine. In 2022, the EU adopted more than 200 measures to help the state and people of Ukraine and support member states in overcoming the consequences of the Russian Federation’s war against Ukraine, a...

The National Bank leaves its key policy rate unchanged at 25%.

The National Bank leaves its key policy rate unchanged at 25%. The NBU notes that inflation at the beginning of 2023 is slowing faster than expected but remains high. In February, it declined to 24.9% year-on-year. At the same time, it is noted that the duration ...

The IMF will soon announce a four-year program for Ukraine worth $15.6B.

The IMF will soon announce a four-year program for Ukraine worth $15.6B. The sum is between $14B and $16B, reports the FT. The publication’s source says an announcement about the program will be made in a few days. The IMF is under pressure to provide a more comprehe...

Wednesday, March 15

The EU will extend Ukraine’s preferential trade status for a year and plans to pay the second tranche of macro-finance at the end of March.

The EU will extend Ukraine’s preferential trade status for a year and plans to pay the second tranche of macro-finance at the end of March. The EU plans to extend for another year the trade protection measures on Ukrainian exports to the EU, known as autonomous trade measures, announced the Deputy Chairman of the European Commission, Vald...

The demand for Ukraine military bonds falls 85%.

The demand for Ukraine military bonds falls 85%. On March 14, the Ministry of Finance attracted UAH 2.73B to the state budget at auctions for the sale of domestic military bonds. According to the ministry, UAH 6.53M was received from selling annual ...

Tuesday, March 14

The NBU is recognized as the regulator of the year by the Central Banking Awards.

The NBU is recognized as the regulator of the year by the Central Banking Awards. For the first time, the National Bank of Ukraine received a title and international recognition for its effective work last year in the war-time conditions. The Central Bank of the Year designation is...

In Ukraine, almost a third of loans are overdue, but banks are in no hurry to go to court.

In Ukraine, almost a third of loans are overdue, but banks are in no hurry to go to court. Due to the war, in 2022 the share of NPLs (loans past due within 90 days) in the Ukrainian banking system increased from 34% to 39%, Opendatabot informs. To resolve an overdue loan situation, banks ha...

Ukraine expects to receive $5B from the IMF to fund a portion of the budget deficit.

Ukraine expects to receive $5B from the IMF to fund a portion of the budget deficit. Ukraine is confident that the International Monetary Fund will help cover part of the state budget deficit this year. Around $5B is expected to be received, said Oleksiy Ustenko, a member of the Parli...

Monday, March 13

The yield on deposits and loan rates in Ukraine have increased.

The yield on deposits and loan rates in Ukraine have increased. In February 2023 average bank interest rate on new hryvnia deposits increased to 10.8% per annum from 10.6% a month earlier. According to the NBU, rates on new deposits in foreign currency for Ukraini...

Friday, March 10

The REPO group has frozen $58B in Russian assets, but asset accumulation has slowed.

The REPO group has frozen $58B in Russian assets, but asset accumulation has slowed. The multilateral Task Force on Prosecution of Russian Elites, Proxies, and Oligarchs (REPO) has blocked or frozen $58B in Russian assets that are restricted in connection with sanctions issued followi...

Thursday, March 9

The IMF has started discussing a potential program for Ukraine.

The IMF has started discussing a potential program for Ukraine. On March 8, the IMF mission, led by Gavin Gray, began its work to discuss a potential program for Ukraine with Ukrainian government representatives. Ukraine Prime Minister Denys Shmyhal emphasized tha...

The EBRD is preparing a €200M loan for Ukrainian Railways (UZ).

The EBRD is preparing a €200M loan for Ukrainian Railways (UZ). The European Bank for Reconstruction and Development will grant UZ an emergency support loan under sovereign guarantees of €200M. The bank’s board of directors plans to consider the related proj...

Wednesday, March 8

MIGA will provide three Ukrainian state banks with up to $10M in guarantees for EBRD trade financing.

MIGA will provide three Ukrainian state banks with up to $10M in guarantees for EBRD trade financing. The Multilateral Investment Guarantee Agency (MIGA), as part of a joint project with the European Bank for Reconstruction and Development (EBRD), will provide state-owned Ukrgasbank, Ukreximbank, and ...

MIGA has launched a trust fund to support Ukraine’s reconstruction and economy – the first $23M has been provided by Japan.

MIGA has launched a trust fund to support Ukraine’s reconstruction and economy – the first $23M has been provided by Japan. The fund, SURE, is a new initiative to solve humanitarian problems and support economic activity and recovery in Ukraine. MIGA expects the fund to grow to $300M with contributions from additional dono...

The National Bank’s reserves decreased by $1B and total $28.86B.

The National Bank’s reserves decreased by $1B and total $28.86B. The NBU reports that reserves decreased by 3.5%, or $1.06B, in February due to the sale of foreign currency to cover the difference between supply and demand in the foreign exchange market. In Februar...

Banks’ demand for “reserve” OVDP bonds has allowed the Ministry of Finance to attract UAH 16B to the budget.

Banks’ demand for “reserve” OVDP bonds has allowed the Ministry of Finance to attract UAH 16B to the budget. According to Ministry of Finance data, UAH 61.74M was received from the sale of annual hryvnia bonds at 18.5% per annum. In addition, the Ministry placed bonds with a 20-month maturity for UAH 14.2M a...

Tuesday, March 7

World central banks are aggressively buying gold.

World central banks are aggressively buying gold. Central banks worldwide added another 31 tons of gold to their reserves in January, increasing their purchases by 16% compared to December 2022. According to the World Gold Council, Turkey bought 23 t...

Monday, March 6

The Ukrainian Parliament approved an anti-corruption program for 2023-2025.

The Ukrainian Parliament approved an anti-corruption program for 2023-2025. The program contains measures aimed at increasing the government’s efficiency in preventing corruption in various spheres of public life, forming a negative attitude towards corruption in societ...

Friday, March 3

Ukraine’s national debt increased to $116.4B, and the budget deficit to UAH 161B.

Ukraine’s national debt increased to $116.4B, and the budget deficit to UAH 161B. Ukraine’s state and state-guaranteed debt as of January 31 2023 amounted to UAH 4.258.2T or $116.4B. According to the Ministry of Finance, the amount of debt increased during January in hryvnia,...

Thursday, March 2

The Ministry of Finance paid off 1-year military bonds worth more than UAH 27B.

The Ministry of Finance paid off 1-year military bonds worth more than UAH 27B. On March 1, the Ministry of Finance paid off 1-year military OVDP bonds worth more than UAH 27B, issued at OVDP auctions on March 1, 2022. The ministry reminded observers that a year ago, at the first...

Wednesday, March 1

The Ministry of Finance has raised bond rates and placed securities for UAH 13.8B.

The Ministry of Finance has raised bond rates and placed securities for UAH 13.8B. The Ministry of Finance raised UAH 13.77B for the state budget from the sale of military bonds on February 28. According to the Ministry of Finance, from the sale of 9-month hryvnia bonds, the state a...

Ten Ukrainian banks provided 95% of the banking industry’s profits.

Ten Ukrainian banks provided 95% of the banking industry’s profits. According to 2022’s results, most banks in the country stood their ground, and some even managed to improve their performance compared to 2021, Opendatabot informs. The total bank profit last year was...

Tuesday, February 28

Janet Yellen arrived in Kyiv to reinforce the US’ support for Kyiv.

Janet Yellen arrived in Kyiv to reinforce the US’ support for Kyiv. US Treasury Secretary Janet Yellen made an unannounced trip to Ukraine to reinforce Biden’s administration support and highlight the economic aid helping keep the embattled nation’s schools, hospitals...

The National Bank is updating its strategy in response to the protracted war.

The National Bank is updating its strategy in response to the protracted war. The National Bank of Ukraine has started forming a revised strategy that considers the transition to a “protracted war phase” and the need for further recovery, said the head of the NBU, A...

Monday, February 27

The Ukrainian Prime Minister has revealed the new IMF program’s details.

The Ukrainian Prime Minister has revealed the new IMF program’s details. The Ukrainian authorities want to start a new program with the International Monetary Fund in the first quarter of this year. It will consist of two parts: immediate financial support during the war, ...

The United States will provide Ukraine with $2.5B for state services.

The United States will provide Ukraine with $2.5B for state services. On February 24, the World Bank Group announced additional grant funding for Ukraine in the amount of $2.5B. This is direct budgetary support for the Ukrainian government, which will be provided to ens...

Friday, February 24

The G7 countries have committed to increasing financial aid to Ukraine to $39B in 2023.

The G7 countries have committed to increasing financial aid to Ukraine to $39B in 2023. In December, the G7 nations pledged $32B in financial support for Ukraine, and now it’s $39B, the G7 finance ministers said in a statement. This commitment gives Ukraine confidence and allows au...

The G7 countries will assist Ukraine in securing a $15B loan from the IMF.

The G7 countries will assist Ukraine in securing a $15B loan from the IMF. According to Bloomberg, the IMF has been actively discussing the program with the US Treasury Department in recent days. US Treasury Secretary Janet Yellen said at the G20 summit that the US supports ...

Thursday, February 23

The IMF is ready to provide significant economic support to Ukraine.

The IMF is ready to provide significant economic support to Ukraine. The aid will be delivered within the framework of a new full-fledged loan, IMF managing director Kristalina Georgieva said after a visit to Kyiv. She praised Ukraine’s efforts to transform the e...

Wednesday, February 22

The head of the IMF came to Kyiv to discuss a $15B loan program.

The head of the IMF came to Kyiv to discuss a $15B loan program. On February 20, the managing director of the International Monetary Fund, Kristalina Georgieva, visited Ukraine. During a meeting with President Volodymyr Zelenskyy, she said that she follows the even...

The EBRD and MIGA join forces in covering trade finance risk in Ukraine.

The EBRD and MIGA join forces in covering trade finance risk in Ukraine. The European Bank for Reconstruction and Development (EBRD) and the Multilateral Investment Guarantee Agency (MIGA) have signed a landmark first co-financing agreement, under which MIGA will issue up ...

Ukrainians prefer foreign currency savings despite the interest growth rate on hryvnia deposits.

Ukrainians prefer foreign currency savings despite the interest growth rate on hryvnia deposits. The yield on bank deposits has grown for the hryvnia in recent months. And in January, according to the NBU, hryvnia deposit interest rates rose by 0.1% up to 12.2% per annum. Foreign currency deposit...

The Ministry of Finance sold UAH 9.5B in bonds and lowered rates on two-year securities.

The Ministry of Finance sold UAH 9.5B in bonds and lowered rates on two-year securities. On February 21, the Ukraine Ministry of Finance auctioned military bonds for UAH 9.5B. The agency also placed OVDP bonds with a maturity of 9 months at 15% and attracted UAH 535M. It was possible to a...

Monday, February 20

The IMF sees grounds for preparing a full credit program for Ukraine.

The IMF sees grounds for preparing a full credit program for Ukraine. Ukraine and IMF experts agreed on revising the Monitoring Program with the participation of the Board of Directors. This will pave the way for the start of discussions on a full-fledged program suppor...

Friday, February 17

The US will transfer $9.9B to Ukraine’s budget.

The US will transfer $9.9B to Ukraine’s budget. The US government plans to transfer $9.9B that has been approved by Congress to Ukraine in the coming months for budget support, said Daphne Rand, director of the US State Department’s Office of...

Mortgage lending is gradually being restored in Ukraine.

Mortgage lending is gradually being restored in Ukraine. In 2022, Ukrainian banks issued 2,009 mortgage loans for a total amount of UAH 1.96B. Compared to 2021, the issuance of new loans decreased by over 80% in terms of the number of contracts and by over ...

Wednesday, February 15

A European working group will explore using frozen Russian assets for Ukraine.

A European working group will explore using frozen Russian assets for Ukraine. An EU working group will be set up to look at using frozen Russian assets for the reconstruction of Ukraine, the Swedish Presidency of the Council of the EU said on Tuesday. The Swedish presidencyR...

Ukraine’s budget deficit this year will be at least $40B.

Ukraine’s budget deficit this year will be at least $40B. The IMF has estimated that Ukraine needs $40-48B in international financial support this year, the head of the International Monetary Fund, Kristalina Georgieva, said at the World Government Summit in...

Tuesday, February 14

Ukraine plans to start testing the electronic hryvnia this year.

Ukraine plans to start testing the electronic hryvnia this year. The Ministry of Digitization wants to speed up the development process of the electronic hryvnia. The pilot project should start in 2024, said the Minister of Digital Transformation, Mykhailo Fedorov....

According to the Big Mac Index, the Ukrainian currency has become the fourth most undervalued.

According to the Big Mac Index, the Ukrainian currency has become the fourth most undervalued. The Ukrainian hryvnia dropped to fourth place in the list of undervalued world currencies in the updated Big Mac Index. A year ago, it was in sixth place, according to data from The Economist for Janu...

Monday, February 13

Ukraine will receive two grants worth $8.6B from the US and other donors.

Ukraine will receive two grants worth $8.6B from the US and other donors. The Cabinet of Ministers approved the involvement of a budget support grant from the Multi-Donor Trust Fund for $2.665B. The US provided part of the grant funds, $2.5B, and another $165M came from Ger...

Moody’s assesses Ukraine’s need for external financial assistance.

Moody’s assesses Ukraine’s need for external financial assistance. The international rating agency Moody’s predicts substantial Ukrainian financing needs amounting to about 20% of GDP in 2023. It is expected that these needs will be covered primarily through support ...

Thursday, February 9

Despite the large volume of currency sales in January, Ukraine’s international reserves grew to $30B.

Despite the large volume of currency sales in January, Ukraine’s international reserves grew to $30B. According to the National Bank, during the first month of the year, reserves increased by 5% to $29.9B. The National Bank received $4.33B into the government’s currency accounts during the month...

The sale of government bonds brought UAH 12.5B to the budget.

The sale of government bonds brought UAH 12.5B to the budget. The Ministry of Finance, on February 7, auctioned domestic state loan bonds worth UAH 12.5B. Almost half – 46% of this issue – consisted of a 2.3-year benchmark OVDP, with which the NBU al...

During the year of war, the share of non-performing loans increased.

During the year of war, the share of non-performing loans increased. The share of non-performing loans (NPL) in the banking sector increased to 38% on January 1, 2023, compared to 30% on January 1, 2022. The volume of problem loans increased by UAH 87B over the year to...

Tuesday, February 7

The prime rate will not change before the end of the year.

The prime rate will not change before the end of the year. Most of the NBU’s Monetary Policy Committee members are considering keeping the discount rate at 25% at least until the first quarter of 2024. However, some board members assume that the key rate redu...

Norway has developed a five-year aid package for Ukraine worth $7.2B.

Norway has developed a five-year aid package for Ukraine worth $7.2B. Norwegian Prime Minister Jonas Gahr Støre said that his government has agreed to provide Ukraine with a $7.2B aid package over the next five years. According to the prime minister, this year, it is pr...

Monday, February 6

Allies pressure the IMF to provide Ukraine with a new $14-16B program.

Allies pressure the IMF to provide Ukraine with a new $14-16B program. According to the FT, IMF representatives plan to meet Ukrainian officials in Warsaw in mid-February to discuss the loan terms. The fund is considering the possibility of launching a program for $14-16...

Confiscated Russian assets will be transferred to Ukraine for the first time.

Confiscated Russian assets will be transferred to Ukraine for the first time. The US Attorney General’s Office announced the first transfer to Ukraine of confiscated assets seized from Russian oligarch Konstantin Malofeev, said the US Attorney General, Merrick Garland. On...

Friday, February 3

Ukraine will negotiate a full-fledged program with the IMF.

Ukraine will negotiate a full-fledged program with the IMF. Ukraine expects to complete its monitoring program with the involvement of the IMF’s Board of Directors and to start negotiations on a full-fledged program in the second quarter. This is necessary to ...

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