Finance

Wednesday, July 24

Founders of industrial parks are eligible to receive ₴150M from the state for infrastructure development.

Founders of industrial parks are eligible to receive ₴150M from the state for infrastructure development. The Ministry of Economy agreed to cooperate with Ukreximbank through the State Stimulation of the Creation of Industrial Parks program. Oschadbank and Ukrgazbank plan to join the program soon. The pro...

Tuesday, July 23

Ukraine agreed to a debt restructuring with its Eurobond holders.

Ukraine agreed to a debt restructuring with its Eurobond holders. As Prime Minister Denys Shmyhal reported, Ukraine has reached fundamental agreements with a committee of Eurobond owners. This is a crucial stage in Ukraine’s debt restructuring, saving $11.4B i...

International partners offer development grants to Ukrainian businesses.

International partners offer development grants to Ukrainian businesses. The Norwegian Nansen Grant Program opened a competition for projects from Ukrainian agricultural producers and processing enterprises. The competition aims to promote investment-ready projects, partic...

The Ministry of Finance has updated the Reform Matrix; Ukraine has already fulfilled 108 indicators in the year’s first half.

The Ministry of Finance has updated the Reform Matrix; Ukraine has already fulfilled 108 indicators in the year’s first half. The Ministry of Finance has updated the Reform Matrix, an analytical tool used to monitor the fulfillment of the requirements of international partners in real-time. In the updated Reform Matrix, ther...

Monday, July 22

Ukraine has fulfilled more than 50% of the IMF’s requirements and received $10.2B from the IMF since the beginning of the war.

Ukraine has fulfilled more than 50% of the IMF’s requirements and received $10.2B from the IMF since the beginning of the war. As Minister of Finance, Serhiy Marchenko noted: “The Government of Ukraine, the National Bank of Ukraine, and other authorities have so far implemented 23 structural beacons out of 37 stipulated...

The German government has confirmed that it has earmarked half the amount for military aid to Ukraine in the 2025 budget, counting on income from the Russian assets.

The German government has confirmed that it has earmarked half the amount for military aid to Ukraine in the 2025 budget, counting on income from the Russian assets. In its draft budget for 2025, Germany will provide €4B for military aid to Ukraine, calculating that Kyiv’s needs for military support will be covered mainly by interest from the frozen assets o...

The Ministry of Defense explained where the additional almost ₴500B from the state budget will be allocated.

The Ministry of Defense explained where the additional almost ₴500B from the state budget will be allocated. In a draft law on increasing state budget expenditures in 2024 approved by the Cabinet of Ministers, which the parliament must approve, financial support for the security and defense sector is expecte...

Friday, July 19

Ukraine is trying for the second time to restructure more than $20B in Eurobonds.

Ukraine is trying for the second time to restructure more than $20B in Eurobonds. A group of Ukrainian bondholders has signed non-disclosure agreements to begin a second round of formal talks with the Ukrainian government to restructure more than $20B in debt. Negotiations started ...

The government proposes increasing budget expenditures by more than ₴500B and raising taxes to obtain an additional ₴140B.

The government proposes increasing budget expenditures by more than ₴500B and raising taxes to obtain an additional ₴140B. Ukraine’s government approved changes to the state budget that include a proposed spending increase of ₴500.3B, of which ₴495.3B would be directed to the security sector and defense. The head of...

The World Bank will finance Ukraine’s private sector with $1B through 2027.

The World Bank will finance Ukraine’s private sector with $1B through 2027. Deputy Minister of Economy Oleksiy Sobolev noted that over the past 1.5 years, the scope of joint work between the Ministry and the World Bank has grown significantly in many areas. Among other things...

Thursday, July 18

The EBRD provides €200M to strengthen Ukraine’s energy security and will help increase the number of Ukrainian projects that are ready to attract foreign investment.

The EBRD provides €200M to strengthen Ukraine’s energy security and will help increase the number of Ukrainian projects that are ready to attract foreign investment. €200M from EBRD will support Naftogaz of Ukraine in creating strategic reserves of natural gas and supporting energy security. The corresponding guarantee agreement was signed by the Minister of Finan...

The G7 agrees to distribute a $50B Ukrainian loan from revenues from frozen Russian assets, and Moscow continues to send new threats.

The G7 agrees to distribute a $50B Ukrainian loan from revenues from frozen Russian assets, and Moscow continues to send new threats. The G7 members are currently negotiating the allocation of aid to Ukraine following the agreement that the G7 leaders reached in June at the summit in Italy to provide a $50B loan backed by proceeds f...

Russian oligarchs might be offer to provide money for Ukraine’s reconstruction in exchange for the lifting of individual sanctions.

Russian oligarchs might be offer to provide money for Ukraine’s reconstruction in exchange for the lifting of individual sanctions. The cost of financing the post-war rebuilding of Ukraine, which exceeds $500B, requires the study of numerous financing mechanisms. Additional funds can be provided by the creation of a new type of di...

Wednesday, July 17

The EU is in a hurry to issue a $50B loan to Ukraine backed by the Russian frozen assets.

The EU is in a hurry to issue a $50B loan to Ukraine backed by the Russian frozen assets. The European Commission plans “very soon” to propose a $50B loan to support Ukraine and finish all the legislative work for it by the end of the year, says the Commissioner for Economy, Pa...

Ukraine lacks ₴500B to finance planned expenditures this year, although the financial sector has increased tax payments by 170%.

Ukraine lacks ₴500B to finance planned expenditures this year, although the financial sector has increased tax payments by 170%. According to the head of the Budget Committee, Roksolana Pidlasa, to finance the necessary expenses, the state budget for 2024 lacks about ₴400-500B ($10-12B). The question of funding the state budget...

Banks invested 25% of assets in OVDP, so the NBU sees no need for further stimulation.

Banks invested 25% of assets in OVDP, so the NBU sees no need for further stimulation. The National Bank believes there is no need to stimulate banks to increase investments in domestic government bonds (OVDP). In January 2023, banks introduced the possibility of covering mandatory rese...

Tuesday, July 16

The NBU insists on further narrowing the state’s 5-7-9% preferential lending program.

The NBU insists on further narrowing the state’s 5-7-9% preferential lending program. The Affordable Loans 5-7-9% state program, despite recent changes that narrowed the financing limit of working capital to ₴5M, is still not sufficiently focused on helping businesses that need it, com...

War risk insurance will initially focus on retail products.

War risk insurance will initially focus on retail products. According to NBU department director Pervin Dadashova, the NBU is finalizing work on a draft law that will establish a full-fledged military insurance system, which, for the first time, will focus on ...

Monday, July 15

DTEK Renewables has prolonged its green Eurobond payments and received support for constructing the second stage of the Tyligulska wind farm.

DTEK Renewables has prolonged its green Eurobond payments and received support for constructing the second stage of the Tyligulska wind farm. DTEK Renewables Finance B.V. successfully negotiated with its investors, and they agreed to extend payments on green Eurobonds for three years – from November 2024 to November 2027. The bondholders al...

Deposit yields in Ukraine continue to fall, but loan rates are also falling.

Deposit yields in Ukraine continue to fall, but loan rates are also falling. In June, the average interest rates on new hryvnia consumer deposits amounted to 10.8% per annum, 0.2 percentage points lower than a month ago, according to the National Bank. Interest rates on new de...

Friday, July 12

In August, Ukraine is scheduled to pay $210M to the owners of GDP warrants, but the Ministry of Finance is delaying the decision.

In August, Ukraine is scheduled to pay $210M to the owners of GDP warrants, but the Ministry of Finance is delaying the decision. Ukrainian Eurobonds holders are still determining the fate of their GDP warrants, the total nominal value of which is $3.2B. On August 1, in addition to the payment for Eurobonds maturing in 2026, Ukr...

Thursday, July 11

Owners of Ukrainian GDP warrants are rallying for negotiations on restructuring.

Owners of Ukrainian GDP warrants are rallying for negotiations on restructuring. Some holders of Ukrainian GDP warrants are planning to create a group that will represent their interests in restructuring sovereign debt, the data platform on public markets, and REDD companies repor...

Wednesday, July 10

Ukrainians are ready for EU tax norms but are not prepared for an immediate tax increase.

Ukrainians are ready for EU tax norms but are not prepared for an immediate tax increase. Most Ukrainians (52%) are inclined to believe that the tax policy should correspond to EU taxation, according to survey data from the Razumkov Center. At the same time, 35% of respondents believe this...

In June, the Ministry of Finance attracted more funds from OVDP auctions than it paid out to investors.

In June, the Ministry of Finance attracted more funds from OVDP auctions than it paid out to investors. In June, the Ministry of Finance raised ₴38.41B and $407.33M from the issuance of domestic government bonds. ₴35.3B of the total volume of OVDP issued in June were military bonds. The refinancing perc...

Monday, July 8

Due to debt repayment, Ukraine’s international reserves decreased by 2.9% to $37.9B.

Due to debt repayment, Ukraine’s international reserves decreased by 2.9% to $37.9B. As noted by the National Bank, June’s dynamics were caused by the NBU’s currency interventions to cover the market’s currency deficit and smooth out exchange rate fluctuations and th...

Friday, July 5

Despite the war, Piraeus Bank continues to show long-term dedication to Ukraine by supporting the rebuilding of energy infrastructure.

Despite the war, Piraeus Bank continues to show long-term dedication to Ukraine by supporting the rebuilding of energy infrastructure. Piraeus Bank joined 17 leading financial institutions by signing a memorandum in Kyiv on bank lending for rebuilding energy infrastructure projects in the war-torn country. This pivotal step reaffirms...

Thursday, July 4

Washington still needs to decide on the amount it will provide to Ukraine as part of the $50B loan secured by frozen Russian assets.

Washington still needs to decide on the amount it will provide to Ukraine as part of the $50B loan secured by frozen Russian assets. The leaders of the G7 countries have agreed that each will provide Ukraine with a loan that will be repaid with the annual profit generated by frozen Russian assets. Politico believes that this proces...

Where will Ukraine spend the $2.2B tranche recently received from the IMF?

Where will Ukraine spend the $2.2B tranche recently received from the IMF? This is part of the funds provided by the $16B Extended Fund Facility (EFF) program. Prime Minister Denys Shmyhal said this will help the government finance critical budget expenditures, social assist...

Ukrnafta will receive a loan from the EBRD and invest $1B in constructing power plants to become a multi-energy company.

Ukrnafta will receive a loan from the EBRD and invest $1B in constructing power plants to become a multi-energy company. Ukrnafta CEO Serhiy Koretskyi said that the company plans to build gas piston installations with a capacity of at least 1,000 MW. For this, the company will use its own funds and borrow funds from Ukr...

Ukrainian businesses will start insuring elevators against war risks.

Ukrainian businesses will start insuring elevators against war risks. Elevator equipment manufacturer KMZ Industries concluded a partnership agreement with the leading insurance company in Ukraine, ARX, regarding the provision of insurance services for elevator complexe...

Wednesday, July 3

Ukraine makes new offers to creditors to reach an agreement on debt restructuring.

Ukraine makes new offers to creditors to reach an agreement on debt restructuring. Ukraine plans to include GDP warrants in a proposal to restructure international bonds worth about $20B. This is a new attempt by Kyiv to establish contact with investors after formal negotiations thu...

The NBU’s currency restrictions threaten defaults in the corporate sector and an increase in the cost of loans to the state.

The NBU’s currency restrictions threaten defaults in the corporate sector and an increase in the cost of loans to the state. Oleksandr Vodoviz, the top manager of the Metinvest group, noted: “The largest easing package was introduced in May 2024: businesses were allowed to take foreign currency abroad to pay loans and...

Tuesday, July 2

Ukraine has a month to avoid default.

Ukraine has a month to avoid default. According to The Economist, Ukraine is facing a looming financial crisis, because the two-year deferral of debt service payments that the country’s creditors agreed to is about to expire. The de...

The state budget has received $20.2B in revenue so far this year: Where did most of these funds come from?

The state budget has received $20.2B in revenue so far this year: Where did most of these funds come from? The Ministry of Finance reported that the largest revenues were from international partners and domestic state loan bond (OVDP) issuance. External financing amounted to $13.8B, and the largest donors ...

At the IMF’s request, Ukraine will work on creating a postal bank.

At the IMF’s request, Ukraine will work on creating a postal bank. Ukraine’s memorandum with the IMF says that the Ukrainian authorities plan to create a specialized bank to ensure access to financial services for residents in remote settlements, de-occupied te...

The largest Ukrainian state bank predicts interest rate decreases on loans and deposits.

The largest Ukrainian state bank predicts interest rate decreases on loans and deposits. As PrivatBank noted, these dynamics will be determined by the reduction of the NBU’s discount rate. A member of the NBU board, Yevhen Zaigraev, noted that the situation with client funds reflect...

Monday, July 1

Ukraine will receive the first funds from the frozen assets of the Russian Federation this summer.

Ukraine will receive the first funds from the frozen assets of the Russian Federation this summer. This summer, the European Council hopes to direct to Ukraine the first revenues from profits generated by the assets of the Russian Central Bank, which were blocked in Europe after the Russian full-sc...

Ukraine will receive another $2.2B from the IMF.

Ukraine will receive another $2.2B from the IMF. The Board of Directors of the IMF completed the fourth review of the Extended Fund Facility for Ukraine (EFF), deciding to allocate about $2.2B to budget support. “Despite the difficult conditio...

Friday, June 28

NBU: Life insurance is a potential source of long-term funds for Ukraine’s economy.

NBU: Life insurance is a potential source of long-term funds for Ukraine’s economy. In Ukraine, there is a significant potential for the development of life insurance, which can become a source of long-term funds for the economy, said the deputy head of the NBU, Kateryna Rozhkova. Th...

Ukraine seeks a common ground with bondholders and tries to avoid default.

Ukraine seeks a common ground with bondholders and tries to avoid default. As Bloomberg explains, Ukraine is trying to reduce debt payments in wartime, but Kyiv needs to maintain good relations with creditors to restore the economy after the war. The Ukrainian government ins...

Spain provides a €50M soft loan to support the private sector of Ukraine and will help UZ to adapt its trains to EU standards.

Spain provides a €50M soft loan to support the private sector of Ukraine and will help UZ to adapt its trains to EU standards. Spain will allocate a soft loan for €50M and an additional grant of €1M in partnership with the IFC to support the stability of the private sector of Ukraine, the Minister of Economy of Spain Carlos C...

Thursday, June 27

The EIB is preparing a pilot project to finance social housing construction in Ukraine and will provide €400M.

The EIB is preparing a pilot project to finance social housing construction in Ukraine and will provide €400M. According to EIB representative Grzegorz Gajda, the initiative will be accompanied by an EU grant contribution. “As part of the project, social housing will be developed in several cities in Ukr...

Ukraine has a significant imbalance between exports and imports, how does this affect the dollar exchange rate?

Ukraine has a significant imbalance between exports and imports, how does this affect the dollar exchange rate? Oleh Hetman, the Economic Expert Platform’s coordinator of expert groups, notes that because the exchange rate is not free-floating but in in a state of controlled flexibility, the national bank...

The largest banks in Ukraine have agreed on preferential lending to restore energy infrastructure; they will finance projects up to €25M.

The largest banks in Ukraine have agreed on preferential lending to restore energy infrastructure; they will finance projects up to €25M. During a banking forum, 17 of Ukraine’s largest banks signed a memorandum on preferential lending for energy infrastructure restoration projects. The memorandum was signed by banks whose net ass...

Wednesday, June 26

Ukraine signed a €27B loan agreement with the EU under the Ukraine Facility program.

Ukraine signed a €27B loan agreement with the EU under the Ukraine Facility program. Ukraine and the European Commission have signed a credit agreement within the Ukraine Facility program, which will provide €27B in loans from 2024-2027 to finance the state budget deficit. The Nationa...

Earnings from Ukrainian enterprises reached a 10-year record of $19.8B.

Earnings from Ukrainian enterprises reached a 10-year record of $19.8B. The cumulative financial result of Ukrainian enterprises for 2023 amounted to more than ₴863.8B (about $19.8B). This is the best indicator in the last 10 years, said Danylo Hetmantsev, Head of the par...

Ukraine owes green power generation investors about $711.2M.

Ukraine owes green power generation investors about $711.2M. The state enterprise Guaranteed Buyer is ₴28.9B ($711.19M) in arrears to renewable energy investors under its green tariff obligations. As reported by the state-owned enterprise, the debt is a consequ...

Ukrainians are increasing their bank account deposits, leading to a ₴31.3B increase in five months.

Ukrainians are increasing their bank account deposits, leading to a ₴31.3B increase in five months. Since the beginning of 2024, the increase in consumer deposits amounts to ₴31.3B, the Deposit Guarantee Fund reported. In particular, it is clarified that as of June 1 the total amount of deposits bel...

Tuesday, June 25

The EU will start arming Ukraine with money earned from Russian assets.

The EU will start arming Ukraine with money earned from Russian assets. On June 24, EU countries approved the first tranche of military aid to Ukraine, about €1.4B, which will come from the proceeds of frozen Russian assets. The funds will be used to purchase equipment su...

Ukrainian bankers predict a further key policy rate decrease to 12%.

Ukrainian bankers predict a further key policy rate decrease to 12%. Seven members of the Monetary Policy Committee of the National Bank have reported the potential to cut the key rate to 12-12.5% by the end of the year, given that the risks to the inflation forecast...

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