Ukraine's Finance Ministry borrows US$38.6 mln in bonds on domestic market

No bonds have been placed denominated in foreign currency.

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Ukraine's Finance Ministry borrowed UAH 1.037 billion, or US$38.6 million, for the national budget at a recent weekly auction to place government domestic loan bonds held on May 26.

Funds in hryvnias were raised through the placement of securities worth UAH 524.09 million (US$19.5 million), UAH 198.75 million (US$7.4 million), and UAH 314.117 (US$11.7 million) with 84-, 182-, and 357-day maturity periods, and a weighted average yield of 10.19%, 10.33%, and 10.97% per annum, respectively, the ministry said on its website.

No bonds have been placed, denominated in foreign currency, the report said.

"At the same time, the Finance Ministry did not satisfy the demand for rates, which is higher than at the previous auction, for nine-month and 12-month government bonds, leaving the yield rates for one-year government bonds unchanged, and raised UAH 314 million (US$11.7 million). The auction for nine-month securities did not take place," the ministry said on Facebook on May 26.

Read alsoPublic debt in U.S. dollars exceeds US$81 bln in April

As UNIAN reported earlier, in late April, the Finance Ministry returned to the domestic borrowing market after a few weeks off, having resumed weekly auctions to place government domestic loan bonds.

Panic on global markets caused by the rapid spread of the coronavirus had triggered the weakening of local currencies in developing economies and a decline in stock market quotes.

As a result, non-residents reduced purchases of debt securities of developing economies, including Ukraine.

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