Government raised UAH 353B from placement of domestic government debt securities since war started

Since Russia’s full-scale invasion started, the Government of Ukraine has raised UAH 353 billion in equivalent currency from the placement of domestic government debt securities.

The relevant statement was made by the National Bank of Ukraine, an Ukrinform correspondent reports.

“Since Russia launched its full-scale invasion of Ukraine through 28 February 2023, the government raised UAH 238,812.2 million, USD 2,237.7 million, and EUR 1,064.2 million from placement of domestic government debt securities through auctions and allocated UAH 234,499.4 million, USD 3,140.6 million, and EUR 662.6 million for redemption of domestic government debt securities,” the report states.

In February 2023, the Ukrainian Finance Ministry borrowed in the domestic debt market UAH 22,338.4 million more (in equivalent) than redeemed domestic government debt securities.

The Ukrainian Finance Ministry continues to raise interest rates on hryvnia-denominated domestic government debt securities. In particular, the maximum rate on hryvnia war bonds went up from 16% p.a. in early October 2022 to 19.75% p.a. in February 2023.

Over the period under martial law, the Ukrainian Finance Ministry has increased the interest rates on U.S. dollar domestic government debt securities (with the maximum yield being at 4.5%  p.a.) and on euro war bonds (with the maximum yield reaching 3% p.a.).