Denys Shmyhal / Photo from UNIAN
The decision on expediency of the move is made by the Finance Ministry.
Ukrainian Prime Minister Denys Shmyhal says he admits that the state may purchase government domestic loan bonds on the secondary market in certain emergencies, but this must not become common practice.
"Regarding government [domestic loan] bonds. We place government securities. Each placement yields the best result in terms of conditions and interest rate," he told journalist on July 23 during his visit to Brussels, where a Memorandum and a Loan Agreement were signed with the European Commission.
Buying up government bonds
"As for the buying [of bonds] by the state on the secondary market, this is possible in emergencies or in certain cases, but this must not become common practice. It's possible, but the decision on expediency of the move is made by the Finance Ministry," Shmyhal said.
Background
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Non-residents' investment in Ukraine's government domestic loan bonds in 2019 increased by 18 times, or UAH 109 billion (US$3.9 billion) to UAH 115.8 billion (US$4.2 billion).
Investment by non-residents in government domestic loan bonds in the first week of July 2020 shrank by 0.6%, or UAH 586.65 million (US$21 million), to UAH 99.02 billion (US$3.6 billion).
As of July 10, 2020, non-residents' investment in government domestic loan bonds decreased by 3.4%, or UAH 3.33 billion (US$119.4 million), to UAH 95.69 billion (US$3.4 billion).
The current share of non-residents in Ukraine's government domestic loan bonds market fell to 11.2%. The non-residents' investment has declined by UAH 20.1 billion (US$720.9 million), or by 17.4%, since the beginning of the year.