From the beginning of the full-scale war until January 31, 2023, the Government of Ukraine raised UAH 203,741.4 million and USD 1,969.2 million from the placement of OVDP bonds at auctions. USA and EUR 1,006.7 million. UAH 222,395.9 million and USD 2,793.3 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 January 2023, the Ministry of Finance’s borrowings on the domestic debt market exceeded its payments on domestic state loan bonds by UAH 44,914.9 million (equivalent).
The National Bank together with the Government of Ukraine are making efforts to activate the hryvnia segment of the domestic debt market.
In particular, for this purpose, the National Bank from January 11, 2023 enabled banks to cover up to 50% of the total amount of required reserves at the expense of the benchmark OVDP with the international identification number (ISIN) UA4000227045. In addition, from February 11 banks will have an opportunity to include two additional benchmark OVDP issues with ISIN UA4000227094 and UA4000227102 in the coverage of mandatory reserves.
For its part, the Ministry of Finance is raising rates on hryvnia government bonds. In particular, if at the beginning of October 2022 the maximum rate for hryvnia military OVDP was 16% per annum, then in January 2023 it increased to 19.7% 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 February 1, 2023, exclusively for 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. It consists of:
- UAH 21,422.0 million or 21.3% of the total volume of purchased hryvnia military government bonds (as of January 1 – UAH 20,248.8 million or 20.2%);
- 344.1 million dollars. US or 32.0% of the total volume of military government bonds denominated in dollars. USA (as of January 1 – 300.5 million USD or 29.1%);
- 92.4 million euros or 17.4% of the total volume of OVDPs denominated in euros (as of January 1 – 86.8 million euros or 17.3%).
The amount of military bonds of the domestic state loan owned by non-residents is UAH 8,217.1 million and USD 9 million. USA.
On January 11, 2023, the Ministry of Finance made another repayment of military government bonds denominated in the national currency for a total amount of UAH 6,799.7 million.
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.
