Finance

Monday, October 21

Ukraine will receive about $5B to produce drones; the opening of defense product exports is under consideration.

Ukraine will receive about $5B to produce drones; the opening of defense product exports is under consideration. President Volodymyr Zelenskyy said that by the end of the year Ukraine will receive another $4-5B for domestic drone production. Zelenskyy specified that the state spent about ₴120B ($3B) on domestic ...

Friday, October 18

Ukrainians are increasingly buying foreign currency. The NBU had to increase interventions to a three-month high.

Ukrainians are increasingly buying foreign currency. The NBU had to increase interventions to a three-month high. According to ICU analysts, demand for foreign currency among Ukrainians remains at a very high level and is forcing the NBU to sell large volumes of it from its international reserves to maintain the ...

Thursday, October 17

US Deputy Under Secretary for International Finance Brent Neiman is confident that the IMF will approve a new $1.1B tranche for Ukraine.

US Deputy Under Secretary for International Finance Brent Neiman is confident that the IMF will approve a new $1.1B tranche for Ukraine. The IMF approved the tranche’s provision at the working level on September 10, but the Fund’s executive board still needs to give its final approval. “Ukraine has already undergone s...

Wednesday, October 16

The European Parliament will determine the fate of Ukraine’s €35B loan next week.

The European Parliament will determine the fate of Ukraine’s €35B loan next week. The European Parliament’s Trade Committee, supported by an overwhelming majority of votes, to provide financial support to Ukraine through a €35B loan secured by the Russian frozen assets. ̶...

Brave1 defense cluster participants have already received $8M in grants from the state.

Brave1 defense cluster participants have already received $8M in grants from the state. According to Minister of Digital Transformation Mykhailo Fedorov, companies registered on the Brave1 platform have already received $8M in grants from the state to develop their technological startups...

Tuesday, October 15

Thanks to lower fees on its IMF loans, Ukraine will save hundreds of millions of dollars.

Thanks to lower fees on its IMF loans, Ukraine will save hundreds of millions of dollars. The IMF, one of Ukraine’s key donors, has made an important decision that will reduce public debt payments for developing countries, including Ukraine. From November, the IMF will reduce its com...

Ukrainian businesses have already received loans sufficient to launch 200 MW of generation, and the Ministry of Energy is confident Ukraine will add 1 GW of distributed generation.

Ukrainian businesses have already received loans sufficient to launch 200 MW of generation, and the Ministry of Energy is confident Ukraine will add 1 GW of distributed generation. According to the NBU, from June to September the majority of borrowed funds were for the purchase and installation of gas-piston cogeneration plants (96 MW), the purchase of diesel and gasoline genera...

Monday, October 14

The World Bank will create a fund that will help the US, Canada, and Japan participate in financing the promised $50B G7 loan to Ukraine for.

The World Bank will create a fund that will help the US, Canada, and Japan participate in financing the promised $50B G7 loan to Ukraine for. The creation of the Financial Intermediation Fund (FIF) to assist Ukraine was supported on October 10 by all members of the international financial organization, with the exception of Russia. The fund...

The tax increase will bring a corresponding increase in Ukraine’s shadow economy.

The tax increase will bring a corresponding increase in Ukraine’s shadow economy. Because of the retrospective increase in taxes from October 1, businesses are transferring their workers to the shadow employment sector. This will increase the shadow economy by 10 percentage points,...

Canada will provide Ukraine with a $300M soft loan, and USAID will mobilize another $1.75B to support farmers.

Canada will provide Ukraine with a $300M soft loan, and USAID will mobilize another $1.75B to support farmers. The MoF signed a fourth additional agreement with the Canadian government regarding a CAD 400M ($300M) loan. The loan is for ten years with an annual interest rate of 1.5%. The grace period is 4.5 yea...

Friday, October 11

In 2025, Ukraine risks losing 50% of its aid from foreign partners.

In 2025, Ukraine risks losing 50% of its aid from foreign partners. According to the Kiel Institute of World Economy, “Ukraine is going through uncertain times regarding further support from Western allies. A Donald Trump US presidency or the use of new lending ...

On what terms will Ukraine receive the EU’s €35B loan?

On what terms will Ukraine receive the EU’s €35B loan? The Council of the EU agreed to provide Ukraine with a €35B package of macro-financial assistance, which will be part of a €45B ($50B) G7 loan secured by the Russian Federation’s frozen assets. ...

During the war, Ukrainians have significantly increased their investments in military bonds, to $1.7B.

During the war, Ukrainians have significantly increased their investments in military bonds, to $1.7B. Individual investments increased to ₴71.2B ($1.7B) at the beginning of October, against ₴25.5B ($622M) in February 2022. Individual investors currently represent more than 4% of the total portfolio o...

Thursday, October 10

WTW sees new market opportunities and offers insurance policies for organizations planning to operate in Ukraine.

WTW sees new market opportunities and offers insurance policies for organizations planning to operate in Ukraine. Foreign and local companies in Ukraine have adjusted to the new realities and continued to work and try to expand their operations during the war. Moreover, many companies are considering entering the...

The MoF raises a record ₴30B from the sale of government bonds, and the NBU expands the list of required benchmark domestic government debt securities.

The MoF raises a record ₴30B from the sale of government bonds, and the NBU expands the list of required benchmark domestic government debt securities. On October 8, the Ministry of Finance placed bonds of the domestic state loan (OVDP) for a total amount of ₴30.26B ($750M). This is more than for the month of August (₴29.1B) and is the largest figure...

Banks in Ukraine predict the growth of business lending in Ukraine.

Banks in Ukraine predict the growth of business lending in Ukraine. Commercial interest rates will no longer decrease, but this will not stop growth in lending, industry representatives shared. In particular, Sense Bank plans for their loan portfolio to grow by 150% t...

Wednesday, October 9

The EU promises to provide Ukraine with a €35B loan by the end of the year and is looking for ways to circumvent Hungary’s veto.

The EU promises to provide Ukraine with a €35B loan by the end of the year and is looking for ways to circumvent Hungary’s veto. EU countries and the European Parliament need to quickly explore all legislative procedures so that Ukraine can receive a new €35B loan, which is the EU’s share of the G7’s proposed loan, ...

In September, Ukraine received only €10M in foreign aid. How was the budget affected?

In September, Ukraine received only €10M in foreign aid. How was the budget affected? In September, Ukraine received the smallest amount of aid from its international partners since the full-scale war began, a €10M loan from the EBRD, after significant receipts in August ($8.5B). Befor...

Tuesday, October 8

This year, deposits in Ukraine are growing faster than loans, and bankers note growing saving accounts and confidence in banks on the part of Ukrainians.

This year, deposits in Ukraine are growing faster than loans, and bankers note growing saving accounts and confidence in banks on the part of Ukrainians. Commenting on the latest financial trends in Ukraine during the recent War & Business conference, the chairman of the board of Piraeus Bank in Ukraine, Yannis Kyriakopoulos, noted that currently, ...

In September, Ukraine’s international reserves decreased by 8.1% to $38.9B.

In September, Ukraine’s international reserves decreased by 8.1% to $38.9B. As noted by the National Bank, this dynamic results from the NBU’s currency interventions to cover the structural currency deficit on the market and smooth out exchange rate fluctuations, as wel...

The EU will change the current system of financing military support to Ukraine in response to Hungary.

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...

The Ministry of Finance explains the importance of the historic tax increase.

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...

Friday, October 4

Scholz assured Ukraine of further support and promised it would receive a loan of $50B. Can the funds go to the military?

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...

The new state agency providing military risk insurance will stimulate investment in Ukraine.

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...

Thursday, October 3

Piraeus Bank joins leaders from the business community to discuss strategic planning at the War & Business event hosted by UBN.

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 ...

The US is directing more than $1B to humanitarian support and the energy system’s restoration in Ukraine.

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 ...

The final adoption of a bill raising taxes may negatively affect the economy: Businesses offer an alternative.

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...

Wednesday, October 2

The EC explains what the allocation of $50B to Ukraine depends on.

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...

Tuesday, October 1

What is holding back the €35B EU loan for Ukraine?

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...

What are the NBU’s plans regarding the key policy rate?

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...

Monday, September 30

Ukraine will receive hundreds of millions in loans from Canada and the Bank of Korea.

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...

The state program of preferential business lending positively affects the economy but needs improvement.

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...

The Polish export credit agency, for the first time, has insured an investment in Ukraine.

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...

Thursday, September 26

Ukrainians are taking out mortgages more actively: Banks are issuing ₴1.2B monthly in loans.

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...

Ukrainians are increasing their debt – lending increased by 5.3%.

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...

Tuesday, September 24

The US Congress nears an agreement on the remaining $5.8B set aside for Ukraine; the Pentagon promises to release the entire amount.

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...

Ukrainian authorities call on the EU to increase aid to Ukraine in the new 2028-2034 EU budget to €400B.

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...

Monday, September 23

Ukraine will restructure government derivatives tied to GDP growth rates.

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...

Friday, September 20

The National Bank of Ukraine kept the key policy rate unchanged at 13%.

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...

Thursday, September 19

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 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...

Wednesday, September 18

The EU will provide Ukraine with up to €40B in new loans by the end of the year, regardless of the US’ decision.

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...

Tuesday, September 17

Russia spends a record $317M per day on war in Ukraine.

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,...

Monday, September 16

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 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...

The Ministry of Finance of Ukraine will hold auctions to exchange OVDP bonds.

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...

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.

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...

Friday, September 13

The yield on deposits in Ukraine is falling, and loans are becoming cheaper.

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...

Thursday, September 12

The IMF agrees to provide Ukraine with another $1.1B, but there are conditions.

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...

Russia lost its case to unblock €70B in the EU, so the funds can now be used to help Ukraine.

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...

Wednesday, September 11

External aid to Ukraine in August exceeded the monthly state budget expenditure by 100% but only partially covered for previous financing shortfalls.

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...

Tuesday, September 10

The National Bank eased currency restrictions for businesses starting September 10.

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 ...

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