Finance

Thursday, September 26

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 ...

Monday, September 9

After Ukraine’s successful debt restructuring, the Fitch agency raised the country’s hryvnia rating.

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 ...

Ukrainian banks increased their profits by 22%, with one of them accounting for 40% of the total amount.

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% ...

Friday, September 6

Kamala Harris’ potential victory has slowed the issuance of a $50B loan to Ukraine.

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...

Maintaining the discount rate level is necessary to develop lending and deposit programs.

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....

Ukrainians are increasing their investment in government bonds: The share is already 4%.

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 ...

Thursday, September 5

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 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...

Ukraine completed its $20.5B Eurobond restructuring, reducing the national debt by $9B.

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...

The IMF pushes Ukraine to raise taxes and depreciate the hryvnia, with $1.1B in new financial aid at stake.

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...

Wednesday, September 4

Ukraine has doubled its national debt, and here is what will happen next.

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...

Fitch Ratings assesses Ukrainian Railway’s financial condition.

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...

Tuesday, September 3

Ukraine will receive the second tranche of EU aid from the proceeds of Russian Federation assets by March 2025

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 ...

The Ukrainian parliament proposes an alternative plan to cover the ₴500B defense deficit.

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...

Ukraine is working to legalize cryptocurrency to fill its coffers.

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...

Monday, September 2

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 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...

Why is successful debt restructuring so important for Ukraine?

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...

Friday, August 30

Over 97% of Eurobond holders support Ukraine’s restructuring planthat will save the country $11.4B.

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. &#...

Thursday, August 29

Ukraine has stopped servicing GDP warrants and some other external obligations.

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, ...

Tuesday, August 27

Ukraine is concerned about the delay in the provision of a $50B loan secured by Russian assets.

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...

Monday, August 26

Ukraine has extended the early consent period deadline for the exchange of Eurobonds.

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...

What awaits bank depositors through the end of the year?

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% ...

Thursday, August 22

The IMF sees tax increases in Ukraine as an incentive for continued international support.

The IMF sees tax increases in Ukraine as an incentive for continued international support. Support from international partners, the restructuring of commercial debt, and an increase in taxes should be considered as a single package to eliminate Ukraine’s financing deficit. “Prog...

Ukrainian entrepreneurs can receive up to €20,000 from Germany to restart their business.

Ukrainian entrepreneurs can receive up to €20,000 from Germany to restart their business. Businesses, internally displaced persons, and Ukrainians who have returned home will be able to receive a portion of €20M in support from the Federal Ministry for Economic Cooperation of Germany (BMZ)...

Wednesday, August 21

Despite a reduction in gold and foreign currency reserves, the NBU has enough of each to respond to possible crises.

Despite a reduction in gold and foreign currency reserves, the NBU has enough of each to respond to possible crises. As of August, the National Bank’s gold and currency reserves reach $37.2B. Since the beginning of the year, the reserves have fluctuated from $37B to $43.8B. Currently, the NBU’s reserves ...

Tuesday, August 20

Analysts have updated the forecast for this year’s main Ukrainian macroeconomic indicators.

Analysts have updated the forecast for this year’s main Ukrainian macroeconomic indicators. Ukraine’s economy will grow by 4% in 2024, inflation will accelerate to 8%, and the exchange rate is expected to be ₴42.6 to $1, according to an updated macro forecast from the ICU financial gro...

Last year, foreign business giants paid billions in taxes to the Russian Federation’s budget.

Last year, foreign business giants paid billions in taxes to the Russian Federation’s budget. In 2023, the ten largest international corporations and banks still remaining in Russia paid approximately $1.78B in income tax to the Russian Federation. Among them are Raiffeisen Bank, Chery Automob...

Monday, August 19

Businesses and housholds have been increasing the volume of loans in hryvnia for more than a year, and rates have decreased to 2019’s level.

Businesses and housholds have been increasing the volume of loans in hryvnia for more than a year, and rates have decreased to 2019’s level. In the second quarter, the net hryvnia commercial credit portfolio increased by 20.5% year-on-year, according to the National Bank. Business lending accelerated in all groups of banks, especially in t...

Friday, August 16

The parliament comments on the lowering of Ukraine’s credit rating to RD.

The parliament comments on the lowering of Ukraine’s credit rating to RD. Early this week, the Fitch rating agency downgraded Ukraine’s long-term credit rating from level C to RD. The $750M 2026 Eurobonds, on which Ukraine failed to make the August 1 coupon payment, w...

A Ukrainian state bank records a 27% increase in card payment transactions: What are Ukrainians buying?

A Ukrainian state bank records a 27% increase in card payment transactions: What are Ukrainians buying? In the first half of the year, Ukrainians paid with cards through the PrivatBank network for 1.6 billion purchases worth ₴451B. This is 27.3% more than in the first half of last year. At that time, th...

Thursday, August 15

Fitch Ratings lowers Ukraine’s credit rating to limited default.

Fitch Ratings lowers Ukraine’s credit rating to limited default. In particular, the issuer’s long-term foreign currency default rating was downgraded from C to RD (restricted default), Fitch Ratings said in a statement. This rating level means that the issuer...

Over the first half of the year, banks increased their profits by 17%.

Over the first half of the year, banks increased their profits by 17%. In the first six months of the year, solvent banks earned ₴79B in net profit, 17% more than the ₴67.6B profit obtained in the same period last year. Only seven small banks out of 62 solvent financial ...

Wednesday, August 14

The EU grants Ukraine €4.2B under the Ukraine Facility, and the budget will receive almost the same amount by the end of the year.

The EU grants Ukraine €4.2B under the Ukraine Facility, and the budget will receive almost the same amount by the end of the year. Ukraine received €4.2B for implementing nine indicators in the second quarter of 2024, which were provided by the Plan of Ukraine within the framework of the Ukraine Facility. The tranche consists of ...

The volume of foreign exchange earnings by exporters increased by 16%, but up to $8B still must be returned to Ukraine.

The volume of foreign exchange earnings by exporters increased by 16%, but up to $8B still must be returned to Ukraine. According to the NBU, the amount of export earnings received in Ukraine for January-June 2024 exceeded the result for the same period in 2023 by 15.9%, or $3.3B, while the amount of unreturned foreign...

Ukrainians are building up hryvnia savings in bank accounts.

Ukrainians are building up hryvnia savings in bank accounts. In July, the amount of funds in household hryvnia accounts temporarily decreased, but at the beginning of August, they recovered and continued to grow without affecting the banking system’s fina...

Tuesday, August 13

Ukraine is increasing its national debt, but its value has decreased by 10.3% since the beginning of the year.

Ukraine is increasing its national debt, but its value has decreased by 10.3% since the beginning of the year. As of June 30, the state and state-guaranteed debt of Ukraine amounted to ₴6.16T ($152.2B), including external debt – ₴4.45T ($109.9B), internal debt – ₴1.71T ($42.2B), the Ministry of Finance s...

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