Ukraine is preparing for the second stage of currency liberalization. The head of the National Bank, Andriy Pyshnyi, specified that he foresees an easing of trade financing and the possibility of paying interest on the obligations of Ukrainian issuers. At the same time,... #AndriiPyshnyi #CurrencyLiberalization #financeUkraine #ICC #nbu #VolodymyrShchelkunov
The NBU decides to keep its key policy rate at 15%. Thus, the National Bank has suspended the cycle of lowering the discount rate, which began in July last year, NBU Chairman Andriy Pyshnyi said. As he noted, the decision is consistent with the need to... #AndriiPyshnyi #financeUkraine #KeyPolicyRate #nbu
The Ministry of Finance raises ₴2.5B less from the sale of government bonds than a week earlier. At primary auctions on January 23, the agency placed OVDP in the amount of ₴6B, a week earlier, it was ₴8.51B. ₴289.33M was received from the sale of annual bonds at 16.8% per annum, ₴1.64B from bonds... #financeUkraine #OVDPselling #UkraineBond
Experts have recognized the “harm” of currency restrictions in Ukraine for economic recovery. Currency restrictions made sense at the beginning of the war in order to maintain economic stability, but now these restrictions only hold back the development of the economy and the attraction of pot... #CurrencyRestrictions #financeUkraine #InvestmentsinUkraine #UkraineEconomy
The Ministry of Finance received ₴552B from the sale of bonds; Ukrainians have doubled their investments in OVDP. Since the beginning of martial law, it has been possible to attract more than ₴1.2T to the state budget by issuing OVDP bonds. The government raised ₴552.6B ($14.5B) in 2023. The Ministry of Finance n... #Bondssale #financeUkraine #nbu #OVDPselling #UkraineBond
The National Bank predicts that loans will become cheaper. After the discount rate’s reduction to 15% in December, loans in Ukraine are likely to become cheaper, according to Deputy Chairman of the NBU Serhiy Nikolaychuk. As he explained, loan rates depend ma... #financeUkraine #LoansUkraine #nbu #SerhiiNikolaychuk #UkraineDeposits
In Ukraine, the yield on deposits has increased, but loans have become more expensive. In December 2023, the average bank interest rate on new consumer hryvnia deposits amounted to 11.7% per annum. A year ago, the figure was 8.2%, NBU data shows. Rates on new consumer deposits in forei... #BankDepositsinUkraine #financeUkraine #HryvniaDeposits #LoansUkraine #nbu
ICU analysts provide a forecast for OVDP rates for the next six months. In the coming months, there will be no noticeable reduction in the rates for OVDP because this trend has already played out in the second half of 2023 in response to the gradual decrease in the NBU di... #BondsUkraine #financeUkraine #KeyPolicyRate #nbu #OVDPselling
Security investments are gaining momentum in Ukraine: the number of investors has increased by 34%. According to the Settlement Center for Servicing Contracts in Financial Markets, registered investors in securities in Ukraine increased by 34%, or by 46,000, in 2023. The volume of operations with hr... #financeUkraine #investments #OVDPselling #ukrainebonds #UkraineSecurities
Due to the war, the share of non-performing business loans increased to 44%. According to the NBU, since the beginning of the full-scale invasion, the share of NPL in the banking sector had risen to 44% at the beginning of October 2023, and their volume reached ₴359B. “Two rea... #financeUkraine #LoansUkraine #nbu #NPL #NPLukraine
Analysts believe that the Ukrainian economy performed surprisingly well in 2023. As noted in the Atlantic Council, in the fall of 2022 Ukraine was forced to print money, and in December 2022, inflation rose to 27%. However, the budget deficit was offset with $40B of international ... #CurrencyMarket #financeUkraine #UkraineBudget2024 #UkraineEconomy #Ukraineinternationalreserves
What will the exchange rate be at the beginning of the year? At the start of 2024, the average exchange rate of the dollar may be in the range of ₴37.90-₴38.40, and the average exchange rate of the euro ₴42.10-₴42.60, analysts from the Center of Exchange Techno... #financeUkraine #hryvniaexchangerate #nbu #UkraineEconomy
Last year, the budget received more than ₴1.2 trillion in tax revenues. According to the State Tax Service, income (balance) to the consolidated budget in 2023 from taxes will amount to ₴1.213T. The Ministry of Finance of Ukraine’s budget indicators for the collected reve... #financeUkraine #TaxesinUkraine #UkraineBudget #UkraineBudgetRevenue
The NBU points to achievements in the financial market during the war. The National Bank has maintained exchange rate stability and switched to managed exchange rate flexibility, which will strengthen the economy and financial system’s adaptability and minimize the... #AndriiPyshnyi #CurrencyMarket #financeUkraine #nbu #UkraineBudget2024
Preferential loans for businesses will cost the state ₴5B this year. The state’s debt to banks for interest compensation under the 5-7-9% Affordable Loans program will reach ₴5B by the end of the year, the head of the parliament’s finance committee, Danylo ... #5-7-9loanprogram #AffordableLoansUkraine #DanyloHetmantsev #financeUkraine #LoansUkraine
Ukrainians think that the country’s economic condition has worsened. In December, assessments of the economic situation in Ukraine worsened, and optimism about the country’s economic situation in the medium-term perspective also decreased. It is noted that Ukrain... #EconomicConditionUkraine #financeUkraine #UkraineEconomicForecast #UkraineEconomy
The financial stress index in Ukraine is high but stable, so the NBU predicts a further decrease in the key rate. The financial stress index, which measures the level of current threats in the sector, is at a high but stable level, the NBU said, presenting a report on financial stability. The report notes that al... #financeUkraine #KeyPolicyRate #nbu #UkraineBusinessExpectation
Ukraine launches Plan B due to delayed funding from Western allies. Finance Minister Serhii Marchenko noted that the ministry is confident of receiving Western aid in 2024 but not in January and February. The EU will consider financial assistance for Ukraine on Februa... #financeUkraine #financialaidforUkraine #SerhiyMarchenko #SupportUkraine #UkraineBudget2024
Bankers forecast a 3% decrease in rates for deposits and loans in Ukraine in 2024. Under favorable economic, military, and political conditions in 2024, rates for bank loans and deposits may decrease by an average of 3%, according to the head of Globus Bank, Serhii Mamedov. He assum... #BankDepositsinUkraine #BankLoans #financeUkraine #GlobusBank #SerhiyMamedov #UkrainianBanks
Bankers name the obstacles to attracting foreign investment to Ukraine. The top manager of Ukrsibbank, Dmytro Tsapenko, said: “A new restraining factor that appeared after the war began is currency restrictions, for example, restrictions on the payment of dividends ... #CurrencyRestrictions #financeUkraine #InvestmentsinUkraine #Ukrsibbank
The IMF insists on increasing bank lending to hasten Ukraine’s recovery. In Ukraine, the level of bank lending is low, which is a significant obstacle to the recovery of the country, according to former member of the NBU Council, Bohdan Danylyshyn. Danylyshyn states that, ... #BankLoans #BohdanDanylyshyn #financeUkraine #imf #LendingInUkraine #nbu
Following a slowdown in inflation, the NBU lowered the key rate for the fourth time in a row. The National Bank of Ukraine decided to reduce the discount rate from 16% to 15% per annum starting December 15, 2023. The NBU continued its pattern of lowering the discount rate, which began in July,... #AndriiPyshnyi #financeUkraine #InflationinUkraine #KeyPolicyRate #nbu
Ukraine strives to solve its financing problems, but there are risks. Kyiv plans to cover its budget deficit primarily through more than $40B in external financing next year. At the same time, more than two-thirds of this amount has not yet been confirmed. Therefore, Uk... #CurrencyRestrictions #financeUkraine #nbu #UkraineBudget #UkraineBudgetDeficit
Ukrainians are increasing their government bond investments. In 2022, the population’s share of the OVDP portfolio increased by ₴5.1B, and in 2023, it increased by ₴20.9B to ₴51.2B. The simplification of purchasing OVDP bonds facilitated this trend. Until recen... #BondsUkraine #DiiaAppUkraine #financeUkraine #OVDPselling #SenseBank #Ukrgasbank
In Ukraine, non-transparent capital flows are twice as large as transparent ones. According to the Center for Economic Strategy, the share of domestic private constructive capital in Ukraine is about 22%, while corrosive capital is about 46%. Corrosive capital represents opaque cap... #ConstructiveCapital #CorrosiveCapital #financeUkraine #UkraineEconomy
Bankers share their forecast for deposit rates through the end of the year. By the end of the year, average rates on hryvnia deposits, depending on the term of the deposits, will remain at 14-14.5% per annum, predicts Globus Bank. It is noted that the average return on deposi... #DepositsInterestRate #financeUkraine #GlobusBank #nbu #UkraineDeposits
Revenues from the sale of bonds by the Ministry of Finance in November exceeded payments by more than ₴24B. For 11 months of the year, borrowing by the Ministry of Finance on the domestic debt market of ₴164.98B in equivalent exceeded payments on bonds of the domestic state loan (OVDP), particularly in Nove... #financeUkraine #nbu #OVDPselling #UkraineBond
In November, the NBU reduced interventions by 27% and canceled all restrictions on the sale of cash currency. The net sale of dollars by the National Bank in November, the second month after the transition from a fixed exchange rate regime to managed flexibility, decreased from $3.34B in October to $2.45B in ... #CurrencyMarket #CurrencyRestrictions #CurrencySale #financeUkraine #nbu
This fall, Ukrainian consumers’ optimism has fallen to its lowest level since last summer. The Ukrainian consumer sentiment index decreased by 2.8 points to 79.9 points in October. This is the lowest that the indicator has been since August 2022, when it was 75.3 points. At the same time, t... #BusinessActivityExpectations #ConsumerPrices #financeUkraine #UkraineEconomy
Ukrainians have taken ₴29B worth in microloans and accumulated debt. In nine months of the current year, Ukrainians were issued six million microloans (MFI) worth ₴29.1B. This is more than in 2022 but 40% less than in the corresponding period in 2021, when citizens too... #financeUkraine #MicroCrediting #Microloan
Ukrainians’ trust in banks is growing, and here is why. Over the past year, the volume of deposits in Ukrainian banks increased by more than 8.6%, reaching a record ₴1.14T. Ukrainians keep ₴733B of this amount in the national currency and ₴409B in foreign ... #BankDepositsinUkraine #financeUkraine #UkraineBankingSystem #UkrainianBanks
Bank profit tax increased to 50% in 2023 and 25% in subsequent years. The Ukrainian Parliament adopted a draft law on a temporary increase in the bank tax rate from an 18% to 50% tax on profits in 2023 and a permanent increase to 25% in the following years. The draft la... #financeUkraine #nbu #TaxesinUkraine #UkraineBanksProfits #UkrainianBanks
The war destroyed foreign currency lending in Ukraine. The Russian full-scale invasion has practically destroyed the demand for foreign currency loans, contributing to the reorientation to lending in the national currency, which is a good indicator for th... #BankLoans #CreditPortfolio #financeUkraine #nbu
This year, the tax on bank’s excess profits may be increased to 50%. The Ministry of Finance will initiate changes to the draft law that was passed in the first reading regarding the taxation of excess bank profits for additional revenues for the state budget next year... #financeUkraine #nbu #TaxesUkraine #UkraineBanksProfits #UkrainianBanks
The government will pay the NBU more than ₴120B for printing the hryvnia last year. According to the National Bank’s calculations, in 2023 the total amount it will receive from the Ministry of Finance for government bonds (OVDP) in its portfolio will amount to ₴120.75B, analysts writ... #BondUkraine #financeUkraine #HryvniaEmission #nbu #OVDPselling
The Ukrainian Treasury lost ₴45M in the first month after introducing a flexible exchange rate. The State Treasury’s hryvnia revenues from the sale of foreign currency following the abolition of the fixed dollar exchange rate were ₴45.18M less than they could have been if the exchange rate had r... #CurrencySale #dollarexchangerate #financeUkraine #UkraineBudget
Ukraine lost almost $49B in 2016-2022 due to insufficient attention to the crypto industry. Legalization of the crypto industry in Ukraine without additional incentives could generate an amount that is 4.9% of GDP. Since 2016, Ukraine has lost $48.8B in direct income to its population and co... #CryptoCurrencyUkraine #CryptoIndustryUkraine #financeUkraine
Hryvnia deposit profits will change in Ukraine. In November, Ukrainians can expect a drop in interest rates on hryvnia deposits. Interest will be 14-14.5% on average, but the return on deposits may rise to 6-7%, the experts say. This month, the mai... #BankDepositsinUkraine #financeUkraine #HryvniaDeposits #nbu
Ukraine’s international reserves decreased for the third month in a row. In October, they fell by 1.9% to $38.97B, NBU data shows. The bank explains that the dynamics last month were caused by the NBU’s interventions and the country’s debt payments in foreign c... #CurrencyMarket #financeUkraine #NationalBankReserves #nbu #UkraineInternationalReservs
Ukrainians increased their cash savings by $8B. Foreign currency remains the preferred form of savings for Ukrainians. Since the beginning of 2023, the volume of cash foreign currency belonging to citizens and businesses has increased by $8B, said ... #BohdanDanylyshyn #CashCurrency #CurrencySale #financeUkraine #HryvniaDeposits
The NBU plans to lower the key policy rate to 15% in December. A majority among members of the NBU’s Monetary Policy Committee expect the discount rate to decrease by one percentage point to 15% in December, the NBU reported. Accordingly, adjustments to other NBU... #financeUkraine #KeyPolicyRate #nbu
The NBU has lowered the key policy rate to 16% per annum. The Board of the National Bank has decided to reduce the discount rate from 20% to 16% per annum starting October 27. By doing this the National Bank will make it equal to the rate on overnight certif... #financeUkraine #InterestRate #KeyPolicyRate #nbu
The Ministry of Finance has attracted almost ₴23B from the sale of OVDP bonds. On October 24, the Ministry of Finance placed domestic state loan bonds (OVDP) for the total amount of ₴22.91B, significantly reducing the rates for securities denominated in hryvnia. The state receiv... #financeUkraine #KeyPolicyRate #nbu #OVDPselling #UkraineBond
The flow of foreign currency to Ukraine is decreasing, increasing risk for the hryvnia. Over the past few months, currency inflows to Ukraine have significantly decreased, which is explained by two factors: the deficit of foreign trade and the reduction of financial aid from partner coun... #financeUkraine #financialaidforUkraine #foreigncurrency #Hryvnia #UkraineForeignTrade
Banks forecast a decrease in deposit rates, but Ukrainians keep increasing their balances. Most financial institutions expect a decrease in the amount of deposited funds in the fourth quarter of 2023, according to the survey by the NBU. Instead, third quarter data shows an increase in house... #BankDepositsinUkraine #DepositGuaranteeFund #financeUkraine #nbu
Bankers predict that in 2024 businesses will need ₴100-150B under the State Program Affordable Loans at 5-7-9%. Bankers think that this demand will be observed from small and medium-sized businesses. It is assumed that, depending on the interest rate, the loan amount, etc., that in 2024 the potential number of ... #5-7-9loanprogram #AffordableLoansUkraine #BankLoans #financeUkraine
Demand for loans is recovering in Ukraine. In the third quarter, banks recorded increased demand for commercial and individual hryvnia loans, the NBU reports. Most banks expect further commercial and retail loan portfolio growth in the next 12... #BankLoans #CreditPortfolio #financeUkraine #nbu
Bankers lower their expectations for the hryvnia to dollar exchange rate for the next year. Bankers, financial analysts, business managers, and private individuals predict that the exchange rate will be close to ₴40/$1 or higher in the next 12 months, reported the NBU. In October 2023, finan... #dollarexchangerate #financeUkraine #Hryvnia #nbu #SerhiiNikolaychuk
Ukrainians hold more than $100B in cash. The total amount of cash savings belonging to consumers and businesses in foreign currency outside banks in Ukraine is $116B, NBU Council member Bohdan Danylyshyn said. “Households and businesse... #AssetsOfUkrainians #CashCurrency #financeUkraine #nbu #ukraineassets
Military bonds in September brought the budget ₴23B. According to the Ministry of Finance, about ₴185B in military bonds were issued in the nine full months of the year. As of the end of September, Ukrainian citizens owned military bonds worth about ₴25... #BondSalesUkraine #financeUkraine #UkraineBond #UkraineBudget #Ukrainemilitarybonds
