Finance

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...

Ukrainian startups should focus on dual-purpose developments, and to attract investment from large funds; Ukraine should optimize its legislation.

Ukrainian startups should focus on dual-purpose developments, and to attract investment from large funds; Ukraine should optimize its legislation. The head of the Ukrainian Association of Innovative Companies (UAFIC), Rostyslav Dyuk, said that at the beginning of the full-scale war, all startup funding was frozen because the money went to the co...

Monday, June 24

By the end of the year, Ukraine will receive at least $65B from the US, the G7, the EU, and the IMF.

By the end of the year, Ukraine will receive at least $65B from the US, the G7, the EU, and the IMF. The Ukrainian government expects to receive $7.9B in credit support from the US, Minister of Economy Yuliya Svyrydenko said. At a meeting of the Economic and Financial Affairs Council, the EU finance ...

By the end of the year, Ukraine needs another $9.5B for urgent recovery.

By the end of the year, Ukraine needs another $9.5B for urgent recovery. According to the Ministry of Finance, Ukraine needs another $9.5B this year to finance its priority recovery needs. In particular, the money is needed for the defense industry, the energy system, rest...

Thursday, June 20

Ukraine’s banking regulator names the key risks to financial stability in the banking market.

Ukraine’s banking regulator names the key risks to financial stability in the banking market. Banks in Ukraine have maintained financial stability and their clients’ trust while increasing lending and their participation in financing the budget deficit, the NBU reported. The regulator states t...

Bankers predict an interest rate decrease for business loans in Ukraine.

Bankers predict an interest rate decrease for business loans in Ukraine. Following the NBU’s reduction of the discount rate to 13% and the introduction of its lending strategy, banks will be able to significantly reduce interest rates on loans for enterprises in strategic ...

Denmark provides another $170M to support Ukrainian arms manufacturers, allowing them to cover the military’s urgent needs quickly.

Denmark provides another $170M to support Ukrainian arms manufacturers, allowing them to cover the military’s urgent needs quickly. Denmark will make a second, DKK 1.2B ($170M) contribution within the framework of the ZBROYARI: Manufacturing Freedom initiative, Minister of Strategic Industry Oleksandr Kamyshin said. According to t...

Wednesday, June 19

Ukrainian eurobonds drop in value following creditors’ refusal to write part of the debt off.

Ukrainian eurobonds drop in value following creditors’ refusal to write part of the debt off. The value of Ukrainian Eurobonds fell during trading on June 17, showing one of the worst performances for emerging markets. The country’s eurobonds weakened across the curve, with bonds maturin...

Japan will provide $188M in grants to Ukrainian businesses and hold a conference on demining Ukraine.

Japan will provide $188M in grants to Ukrainian businesses and hold a conference on demining Ukraine. The Ministry of Economy and the United Nations Industrial Development Organization (UNIDO) has launched a project to transfer Japanese technologies to Ukraine, which Japan will fund. As part of the in...

The EBRD will finance 50% of the merger between Ukrainian telecom operators.

The EBRD will finance 50% of the merger between Ukrainian telecom operators. The EBRD will provide $217.5M, half of the $435M allocated jointly with the IFC, to finance the creation of a combined company, Datagroup-Volya and Lifecell, following the completion of the purchase a...

Tuesday, June 18

The EU will not finance a $50B loan to Ukraine, so who will provide the funds, and what are the risks?

The EU will not finance a $50B loan to Ukraine, so who will provide the funds, and what are the risks? Italian Prime Minister Giorgia Meloni explained that EU countries are not planning to participate directly in the $50B loan that the G7 plans to provide to Ukraine through the proceeds from frozen Rus...

Ukraine has not agreed with its creditors on Eurobond restructuring terms.

Ukraine has not agreed with its creditors on Eurobond restructuring terms. Ukraine and a special committee of creditors, representing the owners of almost 20% of Ukraine’s Eurobonds, negotiated between June 3 and 14 and exchanged restructuring proposals. However, according t...

Monday, June 17

The G7 officially announced a $50B loan secured by Russian assets for Ukraine.

The G7 officially announced a $50B loan secured by Russian assets for Ukraine. Following the summit, the G7 leaders adopted a declaration outlining the details of the mechanism through which Ukraine will receive up to $50B in aid secured by frozen Russian assets. The leaders of ...

Friday, June 14

These are the details of the G7’s agreement to loan Ukraine $50B.

These are the details of the G7’s agreement to loan Ukraine $50B. The G7 countries have agreed on a loan structure based on the respective size of their economies that will provide Ukraine with about $50B in new aid, which will begin to arrive by the end of the year...

Thursday, June 13

The World Bank maintains Ukraine’s economic growth forecast for the current year and provides $109M in grant funding.

The World Bank maintains Ukraine’s economic growth forecast for the current year and provides $109M in grant funding. The World Bank predicts the growth of the Ukrainian economy to be 3.2% in 2024, according to the bank’s June report, Global Economic Prospects 2024. In January, the forecast was identical. The b...

The world’s largest insurance broker announced an unprecedented $350M war risk insurance program in Ukraine.

The world’s largest insurance broker announced an unprecedented $350M war risk insurance program in Ukraine. Insurance company Aon announced the launch of an $350M war risk insurance program in Ukraine during URC2024. It is designed to simplify Ukraine’s attraction of foreign investment during the war....

Wednesday, June 12

The parliament explains how Ukraine could cover its budget deficit.

The parliament explains how Ukraine could cover its budget deficit. Due to military expenses, a deficit has formed in the state’s budget. Ukraine spent 43% of the planned annual defense budget in just four months. According to the Chairman of the Parliament’s Fi...

The Ukrainian parliament says that the government is preparing to raise taxes.

The Ukrainian parliament says that the government is preparing to raise taxes. Chairman of the Verkhovna Rada Committee on Finance Danylo Hetmantsev said that the Cabinet of Ministers is preparing proposals to raise certain taxes. This is because the Ministry of Defense needs an...

The EU will provide Ukraine with €517M in reconstruction funding through EBRD programs.

The EU will provide Ukraine with €517M in reconstruction funding through EBRD programs. The EU will guarantee €140M for the EBRD Financial Inclusion Recovery Program. At the same time, the bloc will offer €30M in blended grants and €7M in technical assistance under the wartime SME financ...

The G7 will create a fund for Ukraine using income from frozen Russian assets.

The G7 will create a fund for Ukraine using income from frozen Russian assets. Nikkei reported that the G7 plans to create a new fund to support Ukraine through grants, using future income from frozen Russian assets. The World Bank will administer the fund and be funded by contr...

Tuesday, June 11

The G7 still hasn’t agreed on a mechanism for using profits from Russian assets to help Ukraine.

The G7 still hasn’t agreed on a mechanism for using profits from Russian assets to help Ukraine. At the G7 Summit in Apulia, Italy, on June 13-15, the leaders of the member countries hope to agree on using profits from Russian assets frozen in the West to provide Ukraine with budget support and h...

For the first time, a Ukrainian furniture exporter receives a financial guarantee for the transit of goods through 35 European countries.

For the first time, a Ukrainian furniture exporter receives a financial guarantee for the transit of goods through 35 European countries. The largest furniture exporter from Ukraine, the Accord company, became the first to take advantage of a new mechanism to issue financial guarantees for customs operations while transporting goods thr...

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