From the beginning of the full-scale war until February 28, 2023, the Government of Ukraine raised UAH 238,812.2 million and USD 2,237.7 million from the placement of OVDP bonds at auctions. USA and EUR 1,064.2 million. UAH 234,499.4 million and USD 3,140.6 million were allocated to repayment of domestic debt securities for the same period. USA and 662.6 million euros. This is evidenced by the data of the NBU depository.
In February 2023, the Ministry of Finance’s borrowings on the domestic debt market exceeded its payments on domestic state loan bonds by UAH 22,338.4 million (equivalent).
The National Bank together with the Government of Ukraine will continue to make efforts to activate the hryvnia segment of the domestic debt market.
In particular, for this purpose, the National Bank enabled banks to cover up to 50% of the total amount of required reserves at the expense of benchmark OVDP from the list specified by the NBU, and from February 11, 2023 expanded this list.
The Ministry of Finance raises rates on hryvnia government bonds. In particular, if at the beginning of October 2022 the maximum interest rate for hryvnia military government bonds was 16% per annum, then in February 2023 it increased to 19.75% per annum.
During the martial law, the Ministry of Finance also raised the interest rates on dollar government bonds (maximum rate – 4.5% per annum) and on military bonds denominated in euros (maximum rate – 3% per annum).
We remind you that today everyone can participate in the purchase of military bonds and support the financial defense of Ukraine.
Below are detailed statistics of the NBU depository as of March 1, 2023, exclusively regarding military government bonds placed at auctions.
The largest volume of these securities is concentrated in banks – primary dealers.
The second largest in terms of volume is the portfolio of military bonds owned by citizens and businesses of Ukraine. In February, it increased in all currencies and amounts to:
- UAH 23,182.8 million, or 22.3% of the total volume of purchased hryvnia military government bonds (as of February 1 – UAH 21,422.0 million, or 21.3%);
- 542.7 million dollars. of the United States, or 40.3% of the total volume of military government bonds denominated in dollars. USA (as of February 1 – 344.1 million USD, or 32.0%);
- 101.0 million euros, or 17.2% of the total volume of OVDPs denominated in euros (as of February 1 – 92.4 million euros, or 17.4%).
The amount of military bonds of the domestic state loan owned by non-residents is UAH 8,289.1 million and USD 11.3 million. USA.
“For the second month in a row, the Ministry of Finance’s borrowings on the domestic debt market significantly exceed payments on bonds of the domestic state loan. It is important that this is facilitated not only by banks, but also by business and the population, which are increasingly actively involved in the purchase of military government bonds. In particular, this is a manifestation of a conscious patriotic position aimed at uninterrupted provision of the defense and social needs of the state under martial law. This is a significant contribution to the strengthening of the country’s financial front and the approach of our common victory”, – noted NBU Chairman Andriy Pishniy.
More detailed statistics on military bonds are posted at link. The data in the table are given by nominal and amortized cost.
For reference
On March 22, 2022, the National Bank started publishing statistics of the NBU depository on military bonds on a weekly basis. From the beginning of 2023, the National Bank switched to monthly publication of relevant releases as of the first day of the month. Previous data can be viewed by tag military OVDP.
