bank.gov.ua
The National Bank of Ukraine (NBU) and the Ukrainian Finance Ministry have completed a swap of government domestic loan bonds owned by the NBU, the so-called re-profiling, according to the regulator's press service.
The total volume of the NBU-owned government bonds portfolio is currently estimated at UAH 360.6 billion (US$13.6 billion), of the amount, bonds worth UAH 219.6 billion ($8.3 billion) have been exchanged for new ones, the press service said.
Bonds worth UAH 145.2 billion ($5.5 billion) were swapped for long-term hryvnia-denominated bonds with a yield pegged to inflation, while another UAH 74.4 billion ($2.8 billion) in bonds were exchanged for new securities with a fixed yield.
Repayment of the new bonds will be handled in equal portions until 2047, and about UAH 12 billion ($452 million) will be repaid annually. Such an approach will allow to evenly distribute the burden on the state budget in the next 30 years.
In addition, pegging repayments on bonds to inflation will be conducive to balanced fiscal policy, consistent with inflationary targets.
Moreover, the availability of fixed-yield bonds and various periods of maturity will allow the NBU to use them for monetary transactions when needed.
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Under the approved conditions, the Finance Ministry will conduct 40 issues of government bonds worth UAH 219.564 billion for re-profiling. Their circulation periods will vary from seven to 31 years. A yield on the bonds maturing between 2025 and 2035 will be from 8.12% to 11.3% per annum, while that on bonds falling due from 2036 to 2047 is set at an annual inflation rate plus 2.2 percentage points. If inflation is zero or negative, the yield will be paid at a rate of 2.2%.
The NBU owns government bonds worth over UAH 360 billion, or 52% of their total volume in circulation.