Finance

Wednesday, April 24

How will Ukraine’s partners help it close the hole in its budget this year?

How will Ukraine’s partners help it close the hole in its budget this year? According to the Ukrainian government, the need for international financing in 2024 is $37.2B. As of April 20, Ukraine has received $10.2B: $4.9B from the EU (Ukraine Facility) $2.1B from Japan...

Tuesday, April 23

IMF assistance acts as a catalyst for Ukraine’s financial support from other countries,

IMF assistance acts as a catalyst for Ukraine’s financial support from other countries, the head of the IMF, Kristalina Georgieva, emphasized. She notes that the IMF’s 2023-2027 program with Ukraine for will provide $15.1B. However, Georgieva states the program will generate a total of $...

Ukraine will propose a $20B debt restructuring plan by May.

Ukraine will propose a $20B debt restructuring plan by May. Ukraine has prepared a $20B debt restructuring plan for private bondholders and plans to present it by the beginning of May. It is noted that it is critical for Ukraine to conclude a debt restructurin...

Ukraine’s hard currency bonds extended their losses after the US House of Representatives approved the financial and military aid package.

Ukraine’s hard currency bonds extended their losses after the US House of Representatives approved the financial and military aid package. According to Bloomberg, Ukrainian currency bonds initially jumped after the US House of Representatives approved a financial and military aid package worth nearly $61B. However, positive sentiment ero...

Monday, April 22

The EU is approaching a decision on the use of profits from frozen Russian assets to help Ukraine; the US has found a way to transfer up to €50B.

The EU is approaching a decision on the use of profits from frozen Russian assets to help Ukraine; the US has found a way to transfer up to €50B. The Minister of Foreign Affairs of Lithuania, Gabrielius Landsbergis, believes that the EC and the Council of the EU are close to deciding to allocate to Ukraine the profits obtained from Russian Fede...

Friday, April 19

The head of the ECB criticizes the US’ plans regarding the frozen assets of the Russian Federation.

The head of the ECB criticizes the US’ plans regarding the frozen assets of the Russian Federation. The President of the European Central Bank, Christine Lagarde, spoke critically of the idea to use more than €260B in frozen Russian assets to finance military aid to Ukraine. She warned about the leg...

New US aid for Ukraine includes $60.8B and the confiscation of Russian assets.

New US aid for Ukraine includes $60.8B and the confiscation of Russian assets. According to the recently introduced bill regarding Ukraine, aid foresees allocation of $60.8B to Ukraine and regional partners counter Russia. Defense expenditures will amount to $49.9B and also cont...

Thursday, April 18

The Ministry of Finance is seeking about ₴50B in additional domestic resources to finance defense expenditures.

The Ministry of Finance is seeking about ₴50B in additional domestic resources to finance defense expenditures. More than ₴50B ($1.25B) must be found before the end of the year to pay the newly introduced, additional bonuses for military personnel and police officers in the amount of ₴70,000 for service on the ...

Tuesday, April 16

Businesses in high military risk zones receive 20% of available loans.

Businesses in high military risk zones receive 20% of available loans. Every fifth loan under the state program Affordable Loans was issued to a business operating in a zone of high military risk. Since the beginning of the year, loans worth ₴27.3B have been issued to al...

Ukrainians have begun to borrow money more actively and increase their deposits, but experts predict a rate decrease.

Ukrainians have begun to borrow money more actively and increase their deposits, but experts predict a rate decrease. The head of the Finance Committee, Danylo Hetmantsev, commenting on NBU data, notes that lending increased slightly in March but generally stagnated. The balance of hryvnia loans granted to businesses...

Due to sanctions, Russia struggles to receive billions of dollars in export revenue.

Due to sanctions, Russia struggles to receive billions of dollars in export revenue. The strengthening of American sanctions and the refusal by foreign banks to pay Russian companies have deprived Moscow of billions of dollars in foreign exchange. In March, the Russian Federation earn...

Monday, April 15

The US offers to provide Ukraine with billions of euros in aid secured by profits from the Russian Federation’s frozen assets.

The US offers to provide Ukraine with billions of euros in aid secured by profits from the Russian Federation’s frozen assets. As the FT writes, the US is proposing to the G7 a compromise plan for the use of Russian assets rather than their confiscation or simply providing Ukraine with their profits. Daleep Singh, the US pres...

The EU will provide Ukraine with €3.4B in transition financing and allocate €121M for EBRD recapitalization to increase assistance to Ukraine.

The EU will provide Ukraine with €3.4B in transition financing and allocate €121M for EBRD recapitalization to increase assistance to Ukraine. The EC has made the first €4.5B payment of transitional financing for Ukraine, and the next payment of €1.5B is planned for this month, subject to Ukraine’s compliance with all established conditions....

Friday, April 12

Donald Tusk: The EU must use the frozen Russian assets to help Ukraine.

Donald Tusk: The EU must use the frozen Russian assets to help Ukraine. During a news conference in Warsaw on April 11, Polish Prime Minister Donald Tusk said the European Union should tap Russia’s frozen assets to help Ukraine because the windfall profits alone are insuf...

Raiffeisen has launched commercial war risk insurance and will insure ₴1B worth of property.

Raiffeisen has launched commercial war risk insurance and will insure ₴1B worth of property. Raiffeisen Bank has launched a new service in the Ukrainian market for business clients to insure various types of property against war risks. Insurance companies will provide coverage for property th...

Thursday, April 11

Due to slowing inflation, the interest rate on inflation-linked bonds will decrease to 5.4% per annum in May 2024.

Due to slowing inflation, the interest rate on inflation-linked bonds will decrease to 5.4% per annum in May 2024. According to analyst Oleksiy Blinov, as the growth dynamics of the consumer price index slowed to 3.2% per annum in March, the interest rate for inflation-linked government bonds in May will be 5.4% p...

The export credit agency receives wider opportunities for investment insurance.

The export credit agency receives wider opportunities for investment insurance. The government approved the list of military and political risks and the terms and conditions of risk insurance for the Export Credit Agency (ECA). The approved resolution will improve the legal regul...

The EBRD provides a €200M guarantee for business lending.

The EBRD provides a €200M guarantee for business lending. The EBRD has provided Oschadbank with a limit for the portfolio mechanism for risk distribution of €50M. This will generate an additional €200M in new financing for Ukraine’s private sector. The EBRD ...

Unpopular decisions must be made: How does Ukraine plan to get along without US aid?

Unpopular decisions must be made: How does Ukraine plan to get along without US aid? If Ukraine does not receive $11.2B in budget support from the US (as part of a $60B aid package), the consequence will be difficult, unpopular decisions by the Ukrainian government, noted the head of ...

Wednesday, April 10

Experts confirm the recovery of consumer lending in Ukraine.

Experts confirm the recovery of consumer lending in Ukraine. According to the NBU, as of March 1, 2024 the portfolio of bank loans to individuals amounted to ₴230.9B, 12.1% more than on the same date last year. For comparison, as of March 1, 2022, customer debt...

Ukrainian debtholders plan to create a committee of creditors against the background of a possible debt restructuring.

Ukrainian debtholders plan to create a committee of creditors against the background of a possible debt restructuring. According to Bloomberg, large bondholders may intensify negotiations to create such a group after the IMF meeting on April 17. They note that time pressure is increasing as the moratorium on Ukrainian...

Tuesday, April 9

Ukraine’s debt to the IMF is recognized as stable and is not subject to restructuring.

Ukraine’s debt to the IMF is recognized as stable and is not subject to restructuring. To the question of whether the IMF can write off Ukraine’s approximately $15B in debt, taking into account an analysis of Ukraine’s debt sustainability, the top manager of the IMF, Julie K...

What European grants can Ukrainian startups and projects receive?

What European grants can Ukrainian startups and projects receive? Women TechEU is an EU-funded project supporting women leading deep technology startups. As part of the project, a total of 160 startups will receive a grant of up to €75,000 each, as well as an indivi...

Monday, April 8

Ukraine increases its international reserves to a new record.

Ukraine increases its international reserves to a new record. Ukraine’s international reserves grew by 18% in March and amounted to $43.8B on April 1, the National Bank reported. The regulator explained that the increase is due to the volume of income from...

The Russian Federation’s frozen assets: What is Ukraine waiting for, and what is it already receiving?

The Russian Federation’s frozen assets: What is Ukraine waiting for, and what is it already receiving? Deputy Head of the Office of President Iryna Mudra reported that to speed up the receipt of frozen assets from the US the REPO act, which would allow the US president to seize Russian sovereign assets...

Thursday, April 4

The EU continues to work on reparations for Ukraine: €37B in private and €208B in state assets of the Russian Federation are frozen.

The EU continues to work on reparations for Ukraine: €37B in private and €208B in state assets of the Russian Federation are frozen. As European Commissioner for Justice, Didier Reynders, stated: “We are working on this issue regarding Russian frozen assets, whether private or public. We have €37B of private assets in Europe ...

Wednesday, April 3

The US is preparing to transfer $5-8B of Russian assets for the reconstruction of Ukraine.

The US is preparing to transfer $5-8B of Russian assets for the reconstruction of Ukraine. Congress is preparing a bipartisan bill that would allow the confiscation of $5-8B of the Russian Federation’s sovereign assets that are currently under the US’ jurisdiction and use them t...

Ukraine’s national debt increased by 54% during the first two years of the war.

Ukraine’s national debt increased by 54% during the first two years of the war. From February 2022 to February 2024, Ukraine’s state debt increased by $50.4B. To reduce debt pressure on the state budget, Ukraine has worked to attract loans on preferential terms. For example, the ...

The National Bank explains why in 2023, real GDP grew by 5.3%.

The National Bank explains why in 2023, real GDP grew by 5.3%. As reported by the NBU, public sector consumption increased by 9% over the year, and its share in GDP in 2023 reached almost 42% compared to about 18% in 2021. Private consumption grew by 6.1% thanks ...

Tuesday, April 2

Bankers predict a yield decrease for hryvnia deposits at the end of April.

Bankers predict a yield decrease for hryvnia deposits at the end of April. At the beginning of April, rates on hryvnia deposits will remain stable. However, from the second half of the month, we should expect a slight drop in profitability, said Dmytro Zamotayev, director of...

Demand for microcredit grew by 50% last year but failed to reach pre-war levels.

Demand for microcredit grew by 50% last year but failed to reach pre-war levels. Last year, Ukrainians signed more than 8.2 million microcredit contracts for a total amount of ₴40.62B, Opendatabot reports. “However, it is too early to claim that Ukrainians have become impove...

Monday, April 1

How Ukraine’s budget was funded in March: $9B in external financing and $4B in taxes and fees.

How Ukraine’s budget was funded in March: $9B in external financing and $4B in taxes and fees. In March, the state budget’s general fund received ₴158.1B (over $4B) in taxes, fees, and mandatory payments. About ₴105.7B was received from taxes and ₴45.8B from the State Customs Service, but...

Currency restrictions effectively stabilize the Ukrainian economy, but they hold back investment.

Currency restrictions effectively stabilize the Ukrainian economy, but they hold back investment. The director of the NBU’s monetary policy department, Volodymyr Lepushynskyi, stated: “Currency restrictions are effective for stabilizing the economy, but they are burdensome for it and hold ba...

Friday, March 29

One Ukrainian state bank will be reorganized into a bank for reconstruction.

One Ukrainian state bank will be reorganized into a bank for reconstruction. To accumulate and distribute resources for reconstruction, Ukraine needs to create a specialized state development bank (created by reformatting one of the five state banks), which will be removed fro...

Ukraine’s partners provide tens of millions of euros in guarantees for Ukrainian business lending.

Ukraine’s partners provide tens of millions of euros in guarantees for Ukrainian business lending. The Polish bank BGK and Ukrainian Kredobank signed an addendum to an agreement. Kredobank will receive an additional €10M in EC guarantees for lending to Ukrainian entrepreneurs. These funds will incr...

Thursday, March 28

What should Ukraine expect from its international partners in 2024?

What should Ukraine expect from its international partners in 2024? In the first quarter of the year, Ukraine plans to receive almost $10.2B from partners, notes the Chairman of the Committee on Finance, Danylo Hetmantsev. In particular: $4.88B from the EU (Ukraine Fa...

The EU does not want to transfer €5B in income from the frozen assets of the Russian Federation to Ukraine.

The EU does not want to transfer €5B in income from the frozen assets of the Russian Federation to Ukraine. The EU decided not to transfer €5B to Ukraine from the proceeds received from the investment of the frozen assets of the Russian Federation in 2022-2023. This money will be in Euroclear, the body that...

Wednesday, March 27

Following the discount rate decrease, Ukrainian bonds’ yield fell as well.

Following the discount rate decrease, Ukrainian bonds’ yield fell as well. At the first auction, after the NBU decided to lower the discount rate, the Ministry of Finance lowered rates for OVDP by 20-30 basis points. The secondary market also reacted by lowering rates for hr...

The international financial aid deficit next year may reach $15B.

The international financial aid deficit next year may reach $15B. As Deputy Chairman of the Finance Committee Yaroslav Zheleznyak said, the lack of financial aid from international partners next year may amount to $10-15B, and the hidden additional state budget defi...

Tuesday, March 26

The key policy rate in Ukraine may drop to 11-12% by the end of the year.

The key policy rate in Ukraine may drop to 11-12% by the end of the year. Some members of the Monetary Policy Committee of the National Bank have not ruled out a lowering of the key policy rate to 11%–12% this year. This rate will be consistent with expected moderate inflat...

The NBU predicts the stabilization of Ukraine’s FX market.

The NBU predicts the stabilization of Ukraine’s FX market. The National Bank has reported that the upcoming arrival of international financial assistance should contribute to maintaining the stability of Ukraine’s foreign exchange market. As noted in th...

How business tax increases and economic reservations from mobilization will affect Ukraine’s budget.

How business tax increases and economic reservations from mobilization will affect Ukraine’s budget. Ukraine needs to find new sources of income for the state budget because raising taxes for businesses will lead to a decline in the country’s defense capabilities, according to Deputy Chairman o...

Monday, March 25

The confiscation of Russian assets is inevitable to ensure Ukraine’s victory, but banks fear lawsuits from the Kremlin.

The confiscation of Russian assets is inevitable to ensure Ukraine’s victory, but banks fear lawsuits from the Kremlin. The EU will eventually have to confiscate Russian assets if it wants Ukraine to win in the confrontation with the Russian Federation, said the head of the central bank of Latvia, Martins Kazaks. ̶...

Each delayed reform within the framework of the Ukraine Facility will cost Ukraine $400M.

Each delayed reform within the framework of the Ukraine Facility will cost Ukraine $400M. Deputy Minister of Economy Oleksiy Sobolev voiced this prediction at the presentation of the Monitoring of the Implementation of the Conditions of the IMF Program and Support from the EU. According to...

Friday, March 22

The indissoluble link between business and war: UBN held a second event in Kyiv

The indissoluble link between business and war: UBN held a second event in Kyiv On a still cool but already spring day, amid a tangle of bad news and public concerns about the future hanging in the air of Kyiv’s streets, a circle of selected business investors, entrepreneur...

The US supports issuing $50B in bonds backed by frozen Russian assets.

The US supports issuing $50B in bonds backed by frozen Russian assets. The US has proposed to the G7 countries the creation of a special-purpose vehicle to issue at least $50B in bonds backed by the profits generated by frozen Russian sovereign assets and use the proceed...

Over the year, Ukraine’s gross foreign debt increased by almost 25%. How does this threaten the financial system?

Over the year, Ukraine’s gross foreign debt increased by almost 25%. How does this threaten the financial system? Ukraine’s gross foreign debt at the end of 2023 amounted to $161.5B. That is, it increased by almost 25% (+$30.6B). This debt includes the external debt from the government, the central bank, commerci...

Thursday, March 21

Republicans support providing Ukraine with loans, although the White House is opposed.

Republicans support providing Ukraine with loans, although the White House is opposed. Republicans in the US Congress are seriously considering providing at least part of the Ukrainian aid package in the form of a loan as a possible solution to the months-long struggle to deliver suppor...

In January, the volume of mortgage loans issued increased by 100% to ₴1.1B.

In January, the volume of mortgage loans issued increased by 100% to ₴1.1B. In January, Ukrainian banks issued 676 mortgage loans for a total amount of ₴1.1B, the National Bank reported. The volume of consumer mortgage loans granted decreased by 33% compared to December, whil...

Ukraine is unable to pay its bond owners $4.5B, so it is starting debt restructuring negotiations.

Ukraine is unable to pay its bond owners $4.5B, so it is starting debt restructuring negotiations. Beginning in August, Ukraine must pay Eurobond holders $4.5B to service its debt. In 2024, Ukraine is scheduled to pay $910M that will be applied to the principle and $3.61B in interest. However, this...

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