Finance

Tuesday, August 6

Ukraine may not be able to find an additional ₴500B for defense needs.

Ukraine may not be able to find an additional ₴500B for defense needs. Even with a proposed radical tax increase, Ukraine may not fully overcome the fiscal gap that must be closed for effective and timely financing of its military needs. Analysts from RRR4U think tanks h...

How will the collapse of European, Asian, and US stock markets affect Ukraine?

How will the collapse of European, Asian, and US stock markets affect Ukraine? The value of shares in leading US and European companies and businesses is rapidly decreasing. First, the reduction concerns assets with a high level of risk. For Ukraine, these events in the financia...

Monday, August 5

Ukraine will soon receive the first tranche of direct budget support from the US; another $3.9B will arrive by the end of the year.

Ukraine will soon receive the first tranche of direct budget support from the US; another $3.9B will arrive by the end of the year. The State Budget of Ukraine will receive a grant from the US totaling almost $3.9B after representatives from the Ministry of Finance of Ukraine and the World Bank signed a corresponding agreement. Th...

Friday, August 2

Despite market fears, Ukraine has paid $200M to GDP warrant holders.

Despite market fears, Ukraine has paid $200M to GDP warrant holders. Ukraine has paid about $200M to holders of its GDP warrants, securities that weren’t part of a recent $20B Eurobond restructuring agreement with private creditors. The warrants have disbursements link...

The Cabinet of Ministers introduces a payment moratorium for Ukraine’s Eurobonds.

The Cabinet of Ministers introduces a payment moratorium for Ukraine’s Eurobonds. The Cabinet of Ministers exercised the right granted to it by the Ukrainian Parliament and introduced a temporary moratorium on Ukraine’s Eurobond payments. “In connection with the impleme...

Banks have provided ₴3.6B in loans to the energy industry; Japan will help Ukraine build distributed power generation.

Banks have provided ₴3.6B in loans to the energy industry; Japan will help Ukraine build distributed power generation. Since Ukraine’s energy generation capacity restoration programs began, banks have approved loan applications for ₴3.6B. Last week, 20 Ukrainian banks received applications for ₴1.8B under all av...

Wednesday, July 31

Given the war’s continuation, Ukraine will need up to $15B in additional funding next year.

Given the war’s continuation, Ukraine will need up to $15B in additional funding next year. According to Finance Minister Serhiy Marchenko, Ukraine and the International Monetary Fund (IMF) estimate the country’s additional financial need for 2025 from Western partners at between $12B ...

The Ministry of Finance is ready for a compromise with the parliament regarding tax increases.

The Ministry of Finance is ready for a compromise with the parliament regarding tax increases. According to Minister of Finance Serhii Marchenko, this strictly depends on the how the parliament plans to secure an additional ₴120B in revenue by the end of 2024. The Ministry of Finance has propos...

The NBU: Profitable Ukrainian companies do not use bank loans.

The NBU: Profitable Ukrainian companies do not use bank loans. Bank loans are not utilized by operationally profitable companies, which account for about 66% of their total operating profits, NBU data shows. In 2023, 8.6% of companies that borrowed money from Ukr...

Ukraine will receive $3.9B in direct budget support from the US,

Ukraine will receive $3.9B in direct budget support from the US, said Prime Minister of Ukraine Denys Shmyhal. He expressed hope that Ukraine will be able to receive $50B in 2025 through the G7 initiative to use the profits from frozen Russian assets. In addition, ...

Tuesday, July 30

After currency liberalization in May, companies’ demand for currency increased to $322M.

After currency liberalization in May, companies’ demand for currency increased to $322M. Forbes has calculated that the additional demand for currency following the introduction of a large currency liberalization program in May amounted to $322.6M. During the liberalization’s introd...

NBU: Banks will continue lowering deposit rates.

NBU: Banks will continue lowering deposit rates. Almost all banks expect a further decrease in deposit rates for households and corporations over the next 12 months, according to the results from an NBU survey. In the third quarter, banks expect an ...

Ukraine’s processing industry leaders increased their income by 23%.

Ukraine’s processing industry leaders increased their income by 23%. In 2023, the leaders in the Ukrainian processing industry received ₴317.53B in revenue, which is 23% more than a year earlier, with 33% of this income accounted for by companies of the SCM group. It i...

The largest mineral water producer has announced record sales growth of over 100%.

The largest mineral water producer has announced record sales growth of over 100%. The shipment volume of drinks and waters from IDS Ukraine brands (producer of mineral waters Morshynska and Myrhorodska) increased to 5.4 million bottles per day to a new record for the company. Previ...

The USAID AGRO program provides 50% co-financing for agricultural processing development projects.

The USAID AGRO program provides 50% co-financing for agricultural processing development projects. The USAID AGRO program offers co-financing for 15 projects aimed at developing the processing of agricultural products in Ukraine. It is expected that the financed projects will improve the processing...

Monday, July 29

The NBU: Demand for bank loans is growing in Ukraine.

The NBU: Demand for bank loans is growing in Ukraine. Banks expect an increase in demand for all types of corporate and retail loans and loan portfolio volumes, NBU data shows. Most banks will increase their corporate and retail portfolios, though their ...

Capital markets in Ukraine show slow growth and development.

Capital markets in Ukraine show slow growth and development. Despite all the challenges brought about by the war, and contrary to forecasts, capital markets in Ukraine not only avoided collapse but also persisted in demonstrating slow growth and development. Al...

Friday, July 26

The NBU leaves the key policy rate unchanged due to accelerated inflation.

The NBU leaves the key policy rate unchanged due to accelerated inflation. Ukraine halted a run of three interest-rate cuts after an acceleration in inflation prompted policymakers to signal that easing will only be possible to resume next year, reported Bloomberg. The Natio...

The NBU updated its forecast for key indicators in the Ukrainian economy.

The NBU updated its forecast for key indicators in the Ukrainian economy. The NBU predicts the growth of Ukraine’s GDP in 2024 at 3.7% (April’s forecast was 3%). Economic growth in the year’s first half continued, although it has slowed down in recent mont...

Fitch downgraded Ukraine’s rating to pre-default level after its debt restructuring deal.

Fitch downgraded Ukraine’s rating to pre-default level after its debt restructuring deal. Fitch Ratings downgraded Ukraine’s long-term issuer default rating (IDR) in foreign currency from CC to C. “Ukraine’s downgrade reflects Fitch’s view that the agreement in prin...

Sanctions are slowly destroying Russian businesses with payment issues.

Sanctions are slowly destroying Russian businesses with payment issues. New US restrictions imposed in June have put local banks in countries that trade with Russia at a higher risk of so-called secondary penalties, which is delaying or disrupting payments to and from cou...

The EC has restricted companies and private investors from exchanging assets with Russians.

The EC has restricted companies and private investors from exchanging assets with Russians. The European Commission has prohibited individuals and legal entities from EU countries from participating in an asset exchange scheme proposed by Russia. This is in response to the participation of t...

Ukrainian farmers have received ₴62.9B in loans since the beginning of the year, and banks have received ₴38B in loan applications for energy infrastructure restoration projects.

Ukrainian farmers have received ₴62.9B in loans since the beginning of the year, and banks have received ₴38B in loan applications for energy infrastructure restoration projects. Since the start of the year, 9,075 farmers have received ₴62.9B in bank loans. Farmers from the Kyiv, Dnipropetrovsk, Cherkasy and Kirovohrad regions received the largest loans under various programs....

Thursday, July 25

The EU is preparing indefinite sanctions to be placed on Russian assets to enable Ukraine’s $50B loan as part of the G7 initiative.

The EU is preparing indefinite sanctions to be placed on Russian assets to enable Ukraine’s $50B loan as part of the G7 initiative. EU countries are discussing options for extending the period between reviews of the sanctions on the Russian central bank’s assets to ensure the operation of the G7 plan to provide Ukraine with ...

The US is preparing to confiscate Russian money: Financial institutions are required to report any Russian assets.

The US is preparing to confiscate Russian money: Financial institutions are required to report any Russian assets. The US Treasury Department has required institutions that own Russian state assets to inform about them as part of implementing the Law on Restoring Economic Prosperity and Opportunities for Ukrainian...

Ukrainians continue to deposit more money into their savings; in the first half of the year, deposits increased by ₴60.2B.

Ukrainians continue to deposit more money into their savings; in the first half of the year, deposits increased by ₴60.2B. According to the Deposit Guarantee Fund for Individuals, as of July 1, 2024, the total amount of deposits of individuals and entrepreneurs in Ukrainian banks reached ₴1,295T, which is ₴28.9B more than...

The NBU has simplified access of foreign investors to instruments for rebuilding Ukraine.

The NBU has simplified access of foreign investors to instruments for rebuilding Ukraine. The National Bank of Ukraine has adopted a decision that will allow foreign investors to get direct access to marketable debt instruments aimed at Ukraine’s recovery. Starting on July 24, the li...

Wednesday, July 24

The EU will adjust sanctions to ensure the earnings from frozen Russian assets are not interrupted.

The EU will adjust sanctions to ensure the earnings from frozen Russian assets are not interrupted. The EU has presented member states with two options to freeze Russian Central Bank assets for extended periods. It seeks to assuage US concerns over a G7 plan to leverage the profits from these assets...

The EU will provide Ukraine Railways €43M for the modernization and construction of European-standard track.

The EU will provide Ukraine Railways €43M for the modernization and construction of European-standard track. The EU will allocate €42.95M to Ukrainian Railways (UZ) to improve the country’s railway network and begin the transition to 1,435 mm track to ensure infrastructure compatibility and increase th...

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...

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